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Daily Base Metals Report

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US stocks rose on the back of positive economic data outweighing the concerns of growing inflationary pressures. Core PCE gauge has picked up sharply to 0.7% in April, the sharpest increase since 2011; however, investors believed it was not high enough to prompt the change in Fed’s statement; household spending moderated. Consumer sentiment, however, deteriorated in May as a result of continued growth in prices, in line with the median estimate. The dollar gained ground, and the 10yr US Treasury yield was little changed. Elsewhere, the Euro economy confidence got a boost in May from the service industry reopening, as more people get vaccinated; the UK hit 2016 highs.

Metals on the LME have traded higher today, apart from lead, as some risk appetite persisted. Tin gained the most ground, testing the level at $30,960/t but closing below at $30,740/t. Next in line was nickel, closing just below the key resistance level of $18,200/t at $18,113/t. Cash to 3-month spread strengthened into $35.0/t. Copper briefly topped $10,300/t; however, resistance at that level triggered a close at $10,258/t. Zinc prices remained unchanged on the day, closing at $3,060/t. Lead was under pressure, closing below 2,200/t at $2,193.50/t.

Oil futures weavers with supply risks outweighing the demand prospects. The WTI and Brent futures picked up higher to $66.91/bl and $69.77/bl. Precious metals were mixed; gold and silver traded at $1,896.80/oz and $27.83/oz, respectively.

All price data is from 28.05.2021 as of 17:30


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