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Daily Base Metals Report

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US stocks were range-bound on the back of economic data coming out today. The US nonfarm payrolls increased 467,000 in January, a 3-month high, despite the omicron spread across the country; unemployment ticked up to 4%. The dollar gained ground and the 10yr US Treasury yield rallied. Meanwhile, the inflation-adjusted 30yr yield turned positive for the first time since June after strong jobs data today.
The metals were range-bound today, as markets assessed the possible impact of better-than-expected jobs

data on the Fed’s monetary policy trajectory. Copper fluctuated around $9,850/t once again but managed to close 4.7% higher on the week at $9,841.50/t as inventory continues to diminish. Aluminium continued to gain ground, pushing higher past $3,060/t to close at $3,074/t; cash to 3-month spread was at $24.50/t. Nickel and zinc were stronger, with the former edging up to close at $22,991/t; cash to 3-month was at $399/t. Zinc closed at $3,612.50/t

US gasoline prices surged to the highest level in more than seven years, adding further pressures to pricing pressures. Oil futures surged higher as cold weather in the US could poses threats to supply. WTI and Brent traded at $92.67/bl and $93.44/bl. Gold and silver traded higher to $1,807.80/oz and $22.47/oz, respectively.

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

All price data is from 04.02.2022 as of 17:30

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

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.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

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