SHANGHAI, Jul. 1 (SMM) – LME lead prices started last Friday at USD 2,044/mt and went up in Asian trading hours given the weak US dollar. Later, the University of Michigan Consumer Confidence Index grew to 84.1 in June, its highest since July 2007, reflecting consumers’ optimism toward future consumption. In response, LME lead prices rose to USD 2,079/mt but lacked impetus to advance any further. Besides, the Chicago PMI fell unexpectedly from 58.7 to 51.6 in June, below the 55 expected and creating the biggest decline in four years. Fed official Jeremy Stein said the Fed plans to begin tapering the asset purchasing program in September given the US recovery, driving the US dollar up. Thus, LME lead prices surrenders some earlier gains to finally close at USD 2,055/mt, up USD 6.5/mt. Trading volumes increased 2,093 lots to 5,098 lots, while positions fell 1,276 lots.

 

The US dollar index rebounded 83.34 before closing 83.18. COMEX silver for September rose USD 0.96/oz or 5.16% to end at USD 19.56/oz. 

 

On July 1, the most active SHFE 1309 lead contract price is expected to test the 5-day moving average at move between RMB 13,890-13,940/mt. Spot lead prices in China may be RMB 13,700-13,800/mt.