US stocks declined on Monday, led by tech firms, on concerns of high inflation longer-than-expected. The dollar fell for the third day in a row, and the 10yr US Treasury yield found support at 1.45%. The Chinese markets are closed until Friday for the Golden Week holidays. Nonfarm payrolls are out Friday and are expected to double relative to August figures.
Metals on the LME traded higher yesterday, apart from nickel, as the risk appetite in the markets continued from the previous week. Aluminium gained ground, testing the level at $2,929/t but closing below at $2,916/t. Copper increased in the second half of the day, closing just below the resistance level of $9,379/t at $9,250.50/t; cash to 3-month spread remained marginally unchanged at $7.00/t. Zinc briefly topped $3,040/t; however, resistance at that level triggered a close at $3,016/t. Lead prices remained unchanged on the day, closing at $2,148/t. Nickel was under pressure, closing below $18,000/t at $17,924/t.
Oil futures surged, with WTI reaching the 2014 highs of $77.86/bl after the OPEC+ decision to maintain a gradual supply hike despite the supply crunch crisis. Brent traded at $81.58/bl. Precious metals were mixed, with gold and silver edging higher to $1,767.32/oz and $22.68/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 04.10.2021 as of 17:30