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Daily Base Metals Report

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US stocks edged higher, driven by, in large, the tech companies, with another day of mixed-picture data clouding the outlook for the symposium tomorrow. US growth figures diverged in the first half of the year; real GDP growth contracted, as consumer spending was upwardly revised from a contraction of 0.9% in Q2. However, gross domestic income increased by 1.4% in Q2. The Kansas City Fed President joined other officials in stating that more hikes are to come from the Fed, stating that the benchmark would move above 4.0% by the end of the year. Initial jobless claims fell by 2,000 in the week ending August 20th, suggesting there is still resilience in the job market. The dollar softened slightly, and the 10yr US Treasury yield struggled above 3.10%

The metals responded well to the news of new Chinese stimulus measures towards the infrastructure sector, however, gains were marginal day on day. Nickel fluctuated, but support at $21,400/t helped urge the metal to settle higher at $21,677/t. Likewise, copper saw solid strength today, gaining ground to $8,129/t. The metal has remained broadly unchanged so far this month, holding up above the $8,000/t level. The global copper market remains relatively tight, and with inventories edging lowers, it helps to hold the prices above this level. Aluminium and zinc saw moderate changes, both edging higher to $2,433.50/t and $3,548/t, respectively. Lead remained unchanged at $1,976/t.

Oil futures remained unchanged ahead of the Jackson Hole symposium, with WTI and Brent at $94/bl and $100/bl. Gold and silver were range-bound at 1,755/oz and $19.14/oz, respectively.

For more in-depth analysis of base and precious metals, our Q3 2022 Quarterly Metals report is out now!

All price data is from 25.08.2022 as of 17:30


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