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Daily Base Metals Report

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US stocks edged higher yesterday as investors awaited the Fed’s minutes for clues around their thinking during the last meeting. The dollar shot up higher, and the 10yr US Treasury yields continued to decline down to 4-month lows. Elsewhere, the EU officials have raised their economic growth outlook to 4.8% from 4.3% and stated that there is a higher risk of inflation taking hold. UK house prices fell for the first time since January last month, an indication that the market might have lost momentum as tax incentives are about to come to an end.

Activity on the LME was mostly higher yesterday, with aluminium and closing lower on the day at $2,499.50/t. Copper prices were well supported in the second half of the day and tested resistance at $9,537/t to close just off the highs at $9,455/t. Nickel was well bid, testing the resistance level of $18,464/t, before closing below at $18,310/t. Nickel cash to 3-months spread widened out to -$15.00/t. Likewise, zinc was on the front foot, closing at $2,958.50/t. Lead closed lower on the day at $2,290/t.

Oil prices remained volatile, as traders assessed the ongoing tensions between the OPEC+ members on supply output. WTI and Brent sold off to $71.78/bl and $73.16/bl. Gold advanced for the sixth straight day, edging up to $1,804.58/oz, silver traded at $26.12/oz.

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All price data is from 07.07.2021 as of 17:30


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