US stocks rose ahead of the jobs data to be released today, which is forecast to show 725,000 new jobs being added in August. Meanwhile, initial jobless claims fell marginally in the week ending August 28, hitting a new pandemic low. The dollar weakened, and the 10yr US Treasury yield held the ground. The yields have remained broadly unchanged since Powell mentioned the possibility of tapering asset purchases this year.
Metals on the LME traded higher yesterday, apart from tin, as risk appetite returned to the market. Lead gained the most ground, breaking above the key resistance level at $2,300/t and closing higher at $2,312.50/t. Next in line was nickel, closing above the key resistance level of $19,400/t at $19,464/t. Cash to 3-month spread weakened into $48.50/t. Aluminium briefly topped $2,730/t; however, resistance at that level triggered a close at $2,695/t. Copper prices were also seen higher on the day, closing at $9,376.50/t. Tin was under pressure, closing below at $33,500/t.
Oil futures continued to edge higher after the OPEC+ unanimous decision to gradually raise output. OPEC increased its output in August as the nations continued to revive supply after the halt seen during the pandemic. WTI and Brent increased to $70.39/bl and $73.31/bl. Precious metals all sold off, with gold and silver falling into $1,808.60/oz and $23.87/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 02.09.2021 as of 17:30