Base metals across the board took a plunge this week, partly affected by growth in the US dollar on the back of comments from US Federal Reserve Chair Jerome Powell.
While most metals started the week on an upward climb (the exception being lead, which trended downward all week), weekly highs found on Tuesday (April 30) came to a quick plunge by Wednesday (May 1). Though the Fed chair left interest rates unchanged, comments about slowed inflation being potentially caused by “transitory factors” took a hit on commodities.
Nickel, which peaked at US$12,355 per tonne on the London Metal Exchange (LME) on Tuesday, plunged to US$12,120 by Thursday (May 2). Copper was a similar story, as it reached a high of US$6,441 per tonne on Tuesday to nosedive to US$6,213 by Thursday on the LME.
Zinc also felt the heat this week as it climbed to a high of US$2,934 per tonne on Tuesday, only to plummet to US$2,831 by Thursday on the LME. While lead saw its strongest price point on Monday (April 29) at US$1,946 per tonne, it also fell prey to the volatility felt across the market this week, closing Thursday at US$1,858.50 on the LME.
As for iron ore, the commodity managed to remain stable through the week as it made small, yet consistent, gains in its daily closing price. On Friday (May 3), the metal hit a small snag as it dropped 3.69 percent to US$90.27 per tonne as of 3:15 a.m. EDT.
Source: investingnews.com