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Daily Base Metals Report

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US stocks edged higher despite starting on the front foot earlier today. The global sentiment started the day on the back foot as markets assessed the impacts of tightening on global economic growth this year. Target once again cut its profit outlook amid inventory surplus and a lack of consumer demand for discretionary. The dollar found resistance at 102.80. The 10yr US Treasury yield edged below 3.00%. The data on Friday will help to gauge the increase in consumer prices in May and in turn paint the picture of the pace of the Fed hiking cycle in the next couple of months. Meanwhile, ECB is set to end the asset purchasing programme this Thursday and end the cycle of negative interest rates for the first time in eight years. The World Bank cut its forecast for global expansion in 2022 further, warning that longer-term inflation could dent dampen growth.

Metals were mixed on the back of dampening global outlook. Aluminium weakened in the first half of the day but found support at $2,740/t and closed at $2,778.50/t. Likewise, copper weakened to test robust support of $9,600/t back to $9,699/t. Zinc weakened despite gaining footing in the latter part of the day to close at $3,797/t. Lead closed at $2,223.50/t.

Oil futures edged higher driven in large by stronger dollar. WTI and Brent is trading at $119/bl and $120/bl. Gold and silver strengthened into $1,850/oz and $22.14/oz, respectively.

For more in-depth analysis of base and precious metals, our Q2 2022 Quarterly Metals report is out now!

All price data is from 07.06.2022 as of 17:30


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