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Daily Base Metals Report

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US stocks rebounded from the biggest selloff in the last two months, gaining back more than was lost on Monday. US housing starts increased by more than forecast in June, suggesting stabilising residential construction despite supply-side constraints. The dollar consolidated, and the 10yr US Treasury yield was little changed as investors weighed on continued economic support through ultra-low interest rates amid a resurgence of COVID-19 cases. Meanwhile, in the UK, a surge of new coronavirus infections is raising concerns over whether how soon the Central Bank should move to contain inflation.

LME metal prices were on the front foot yesterday, apart from zinc, which closed lower on the day at $2,962/t. Aluminium prices were well supported in the second half of the day and tested resistance at $2,470/t, prices closed lower at $2,465.50/t. Copper was well bid, testing the resistance level of $9,350/t, before closing below at $9,336/t; the cash to 3-month spread strengthened up to -$32.00/t. SHFE aluminium, however, prices weakened marginally, closing at CNY67,910/mt. Lead was seen higher, closing at $2,328/t.

Oil edged higher alongside the equity markets, with WTI and Brent fluctuated, drifting marginally higher to $66.85/bl and $69.03/bl. Precious metals were mostly higher; gold and silver fell down to $1,806.07/oz and $24.83/oz, respectively.

All price data is from 20.07.2021 as of 17:30

Disclaimer

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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.

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