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Daily Base Metals Report

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US stocks finished the week on the back foot as weaker-than-expected labour data eased investor concerns around rising inflationary pressures. Indeed, US payroll increased by 266k in April, despite market estimates of 1m people, with the unemployment rate edging up to 6.1%. As a result, the Treasury yields plunged, and the dollar fell sharply. Meanwhile, in China, exports rose by more than expected in April, a sign of strong domestic demand and growing commodity prices.

Metals on the LME have traded higher today, apart from tin, as risk appetite prevailed. Copper gained the most ground, rallying by 3.13%, breaking above the key resistance level at $10,400/t and closing higher at $10,417/t; the metal continued to trade higher after the close. Next in line was zinc, closing just above the key resistance level of $3,000/t at $3,015/t. Cash to 3-month spread strengthened into -$13.25/t. Aluminium briefly topped $2,543/t; however, resistance at that level triggered a close at $2,540/t. Nickel prices were also seen higher on the day, closing at $18,082/t. Tin was under pressure, closing below $29,800/t at $29,815/t.

Oil futures picked up higher, urging a weekly advance, as demand expectations continue to drive the market sentiment. WTI and Brent edged higher to $64.91/bl and $68.36/bl. Precious metals were mostly higher, with gold and silver increasing up to $1,833.77/oz and $27.38/oz, respectively.

All price data is from 07.05.2021 as of 17:30


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