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Daily Base Metals Report

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US stocks fluctuated today following the last week’s rally; S&P500 gained 5.00% last week back to early-June levels. Liquidity across markets continues to diminish however with a quieter calendar schedule for this week, the risk is lower week on week. US pending home sales rose unexpectedly, up by 0.7% m/m in May, as people tried to secure homes before further mortgage rate rises. Likewise, durable factory orders rose by 0.7% m/m in May, first monthly incline in six months, despite softening manufacturing conditions. The dollar pierced 104 level once again and the 10yr US Treasury yield edged higher. Chinese economy showed moderate improvement in June as lockdown restrictions in the country were lifted, allowing businesses and households to leave their homes. Meanwhile, the PBOC pledged to maintain a supportive monetary policy stance as it aids the economic recovery post-covid. Elsewhere, Russia defaulted on its external sovereign bond payment for the first time in more than a century as it failed to transact the amount overseas.

Metals recovered on Monday following last week’s sell off on the back of promising data from China. Tin, in particular, gained more than 10% pushing the price back up to $22,400/t; cash to 3-month widened into $435/t. Lead gains were also robust, with the metal closing higher at $2,003.50/t. Aluminium tested resistance of $2,500/t to close at $2,495.50/t. Copper opened on the front foot at around $8,450/t level, however, moderate weakness throughout the day pushed the metal to close lower at $8,417.50/t. Only zinc was lower on the day, closing at $3,318/t.

Oil futures fluctuated as G7 set to discuss the cap on Russian oil as well as the revival of Iran Deal. WTI and Brent trade at $109/bl and $114/bl. Precious metals were mixed; gold settled marginally lower despite earlier gains as UK is set to ban import of the metal from Russia. Gold and silver traded at $1,823/oz and $21.28/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 27.06.2022 as of 17:30


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