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Daily Base Metals Report

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US stocks edged higher yesterday, supported by the progress seen on the US debt ceiling deal. US jobless claims fell by more than expected in the week ending October 2nd, highlighting the continued recovery in the labour market; the ADP figures are out today, and forecasts point to an improvement month-on-month. US used car prices rose to an all-time high in September, further exacerbating the belief of high CPI figures in the coming months. The dollar softened marginally, and the 10yr US Treasury yield gained ground once again to 1.566%. European shares were also seen higher, as the ECB said to be studying a new bond-buying programme as it plans to phase out current emergency programmes.

Metals on the LME have all traded higher yesterday, on the back of positive economic data from the US and Chinese investors coming back from holidays. Copper gained the most ground testing the $9,288/t level but closing below at $9,280/t. Cash to 3-month spread strengthened into $9.50/t. Next in line was aluminium, closing below the resistance level of $2,950 /t at $2,946/t. Nickel briefly topped $18,300/t; however, resistance at that level triggered a close at $18,264/t. Zinc prices were supported above $3,020/t, closing at $3,049.50/t.

Oil futures gained ground after the US Energy Department statement that it is not planning to tap into oil reserves. WTI and Brent increased to $78.32/bl and $82.05/bl. Precious metals were mixed, with gold and silver softening into $1,757.99/oz and $22.62/oz, respectively.

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

All price data is from 07.10.2021 as of 17:30


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