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Daily Base Metals Report

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US stocks fluctuated despite better-than-expected labour data. US job growth accelerated at the fastest rate in nearly a year in July, as the unemployment rate declined, highlighting the long-term trend of recovery in the labour market. The data was above expectations, fuelling expectations that the Fed will pull back stimulus much sooner. The dollar rallied, and the 10yr US Treasuries found support above 1.22%.

Metals on the LME were broadly weaker today on the back of stronger dollar, with lead losing the most ground. The metal dropped below the $2,280/t support level to close at $2,274.50/t. Selling pressure in the second half of the day caused copper to test appetite around $9,459/t before closing marginally higher at $9,468/t. Aluminium prices found support below $2,580/t and closed at $2,578/t; the cash to 3-month spread widened out to -$5.00/t. Zinc tested support at $2,970/t before closing higher at $2,983.50/t. Tin closed on the front foot at $34,750/t.

Oil closed the week on the back foot, as the spread of the Delta variant clouds the demand outlook. WTI and Brent weakened to $68.14/bl and $70.65/bl. Precious metals all slid after the US jobs report, with gold and silver falling to $1,762.41/oz and $24.30/oz, respectively.

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

All price data is from 06.08.2021 as of 17:30


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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.

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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