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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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This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

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