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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

Disclaimer

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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