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Daily Base Metals Report

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US stocks fluctuated as yields continued to decline on a mixed inflation outlook. US consumer sentiment rose so far in June by more than expected as the outlook for the economy continues to improve amid rising vaccination numbers. The dollar rallied and the 10yr US Treasury yield held the ground after testing 1.4266% once again. European stocks rallied, as investors assessed the impact of continued policy support. UK GDP gathered momentum in April, as most of the retail reopened during the month. Elsewhere, Russia raised interest rates for the third consecutive time as it said more will be necessary to tackle a spike in inflation.

Sentiment on the LME was mixed once again. Copper prices were well-supported above $10,000/t, breaking above the $10,100/t level, but closed lower at $10,003.50/t. Copper cash to 3-month spread has widened to -$28.40/t. Zinc trended higher to test the resistance at $3,050/t before closing below at $3,044.50/t. Lead consolidated, closing at 2,205/t. Aluminium was softer, closing at $2,464.50/t. Nickel was also softer, breaking below the key support level of $18,300/t to close at $18,227/t.

Oil futures rose amid improving demand outlook; WTI and Brent picked up to $70.90/bl and $72.81/bl. Precious metals softened, with gold and silver falling to $1,877.53/oz and $27.95/oz respectively.

All price data is from 11.06.2021 as of 17:30


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