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Daily Base Metals Report

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US stocks fluctuated ahead of the Fed meeting yesterday, as it said it would scale purchases back by $15bna month starting in November while remaining patient on rate hikes. Meanwhile, the Treasury announced the first cut in long-term debt sales since 2016, down by $6bn from record levels, highlighting slowing demand for borrowing. ADP data pointed to US companies adding more jobs than forecast in October, the third consecutive month on strong inclines, as companies are keen to fill the gap in labour participation. US service PMI grew to reach record highs in October, up to 66.7, supported by strong business activity amid the fading impact of lockdown restrictions. The dollar gained ground and the 10yr US Treasury yield consolidated.

Metals on the LME have been mixed once again yesterday, with most of the base metals complex strengthening in the first half of the day before selling pressures took hold to offset the earlier gains, suggesting a lack of appetite for higher prices. Aluminium fell below the $2,690/t level it has struggled to break this week, to close at $2,656/t. Copper gained ground to test resistance at $9,679/t before falling lower to close at $9,458.50/t; the cash to 3-month spread widened out to $190/t. Nickel breached support level of $19,200/t to close at $19,162/t. Tin and lead were seen moderately higher, closing at $37,110/t and $2,374.50/t.

Oil futures sold after major consumers highlighted the need for OPEC+ to boost supply. WTI and Brent traded at $81.14/bl and $82.35/bl. Precious metals softened ahead of the Fed meeting, with gold and silver falling down to $1,762.25/oz and $23.18/oz, respectively.

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

All price data is from 03.11.2021 as of 17:30


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