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Daily Base Metals Report

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US stocks gained on positive economic data yesterday. US GDP grew at 6.5% annualised rate in Q1 2021, in line with market expectations. US jobless claims fell by 13,000 to 553,000 in the week ending April 24th, as more people return to work. US pending home sales rose less than forecast in March on tight supply, another indicator pointing to a lack of available properties. Regardless of recent positive data, Powell dismissed concerns about price surge, implying that the economy will continue to run hot for a while. The dollar gained ground and the 10yr US Treasury yield edged up higher to test 1.67%. Meanwhile, in the EU, ECB warned that the economy will need more time until full recovery despite some positive data in recent months.

Activity on the LME was mixed yesterday, with lead and aluminium closing higher. Nickel was subject to moderate selling pressure in the second half of the day, testing the support level of $17,200/t and closing at $17,257/t. Copper extended its rally, topping $10,000/t, the highest level since 2011, as mines struggle to keep up with the growing demand, before selling off to close lower on the day at $9,885/t. Aluminium edged higher to test $2,433/t, before closing lower at $2,417/t; cash to 3-month spread tightened in to $4.25/t. Lead prices were higher on the day, closing at $2,116.50/t. Tin was range-bound, closing at $28,475/t.

Oil futures climbed to a six-week high as demand confidence supported the rally. The WTI and Brent gained to test $64.65/bl and $68.18/bl. Precious metals were on the back foot, with gold and silver edging down to $1,768.74/oz and $25.94/oz, respectively.

All price data is from 29.04.2021 as of 17:30

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