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Daily Base Metals Report

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US stocks climbed on Friday on speculations of recovering economy and the belief that the Fed will not taper the bond-buying immediately, helping to support market liquidity. US job growth surged the most in 10 months, while unemployment edged up to 5.9% in June, in part to a rising amount of job seekers now in the market looking for jobs. US trade deficit widened in May, driven by a bigger rise in imports. The dollar and the 10yr US Treasury yield both softened.

LME metal prices were on the front foot on Friday, apart from zinc, which closed lower on the day at $2,935/t; the cash to 3-month spread widened out to -$16.99/t. Aluminium prices were well supported and tested resistance at $2,564/t and closed lower at $2,562/t. Copper was well bid in the second half of the day, testing the resistance level of $9,400/t, before closing below at $9,376.50/t. Lead prices remained supported above $2,260/t before closing at $2,300/t. Nickel was also stronger, closing at $18,342/t.

Oil futures were mixed, as OPEC+ delayed a supply decision after a dispute about an inflationary spike in prices. WTI and Brent traded at $75.10/bl and $75.98/bl. Precious metals were all higher, with gold and silver edging up to $1,782.22/oz and $26.37/oz, respectively.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals Report.

All price data is from 02.07.2021 as of 17:30


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