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Daily Base Metals Report

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US stocks fell from record highs yesterday as investors await the key Fed meeting later on in the week. Expectations are that the central bank will reaffirm their ultra-loose policy stance and that it is too soon to start thinking about the tapering of the bond purchases. The dollar softened and the 10yr US Treasury yield bounced back after hitting a 3-month low. US industrial production, producer prices and retail sales are out today, with most of them expected to decline month-on-month. Elsewhere, tensions in the ECB over how and when the bond-buying programme should be tapered are growing over into the public domain, creating confusion in the markets.

Activity on the LME was mixed today, with only copper and lead closing marginally lower. Aluminium was well bid in the second half of the day, but failed above $2,496/t and closed at $2,494/t. Nickel was slightly firmer and closed near the day’s highs at $18,480/t. Zinc prices were stronger on the day, closing on the front foot at $3,044.50/t. Copper broke the support level at $10,000/t and closed lower at $9,971.50/t; cash to 3-month spread widened out to -$29.75/t. Lead softened, closing lower at $2,211/t.

Oil futures extended a run amid optimism that the lifting of lockdown measures will boost demand in the US and Europe. WTI and Brent strengthened into $71.51/bl and $73.32/bl. Precious metals were mixed, with gold and silver trading at $1,864.05/oz and $27.95/oz respectively.

All prices are from 14.06.2021 as of 17:30


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