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Daily Base Metals Report

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US stocks reversed earlier gains after the downbeat sentiment data, as the Fed is set to continue with rate hikes next month. US sentiment gauge fell to 16-month lows in June as inflation continues to deteriorate the outlook. US home prices have decelerated for the first time since 2021 in April, even before the increase in interest rates and, in turn, mortgage rates. US dollar and the 10yr US Treasury yield edged higher. Meanwhile, sentiment in China was boosted after the cut of the quarantine period for arrivals, suggesting a sign of alleviating lockdown restrictions.

Mixed performance amongst the base metals group today as markets assessed the impact of quarantine times upon arrival into China. Aluminium found resistance at $2,536/t before closing down lower to $2,495.50/t. Lead losses were also moderate after the metal pierced support at $1,980/t and closed at $1,971/t. Tin sold off in the latter part of the day before closing at $26,800/t. Copper gained marginal footing after it bounced off the resistance level of $8,538/t to close at $8,417.50/t. Zinc gains were capped by $3,400/t level, causing the metal to close at $3,333/t; the cash to 3-month spread continues to soften following the recent gains and now stands at $57/t. Iron ore prices struggled to break above $125/mt, causing the metal to close at $124.21/mt.

Oil futures extended gains for the third day straight as global output, and China’s partial cut of restrictions creates tighter markets. WTI and Brent now trade at $110/bl and $116/bl. Precious metals were mostly lower today, with gold and silver edging down to $1,820/oz and $20.90oz, 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 28.06.2022 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.

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