MORNING VIEW: Base metals consolidate, but dip buying half-hearted

Base metals prices on the LME and SHFE were mixed - albeit with a slight upward bias - this morning, Wednesday May 26. But the rebounds seem half-hearted, with some erring on the side of caution judging by the lower treasury yields and stronger gold price.

While the United States Federal Reserve generally seems to be remaining dovish, the vice chair, Richard Clarida, spoke of a “soft landing”... ...But does that not sound like putting the brakes on? The Fed will have to be very careful with its choreography going forward if it is to avoid rattling the markets. Base metals London Metal Exchange three-month base metals prices were mainly firmer this morning in quiet trading conditions, with only 2,814 lots traded by 5.50am London time, compared with 5,231 lots and 13,606 lots at similar times on Tuesday and Monday respectively. Aluminium ($2,379.50 per tonne) bucked the trend with a 0.3% loss, but the rest of the base metals were up by an average of...

Published

William Adams

May 26, 2021

08:24 GMT

London

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