SHANGHAI, August 4 (SMM) – LME lead prices on Tuesday advanced to a 3-month high of USD 2,237/mt, and prices generally moved around USD 2,200/mt. Currently, total positions exceeded 96,000 lots after an increase of more than 2,000 lots, and the proportion of cancelled warrants dropped to a low level after inventories experienced constant declines, an indication that inventories will fall at a slow pace in the future, and many even increase instead. SMM believes LME lead prices will represent corrections in the short term based on technical indicators.
In neighboring markets, the disappointing US housing data, and a record low of bond yield depressed investor buying interest, helping the US dollar index drop to a level of 80.469 seen in Mid April before closing at 80.639. Gold futures for December delivery finished up USD 2.10 to end at USD 1,187.50 per ounce. Silver futures for September delivery ended 0.30 cents higher at USD 18.422 per ounce.
Domestic lead market is expected to trade in the RMB 16,200-16,400/mt range on Wednesday.
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