SHANGHAI, Oct. 8 (SMM) – Non-essential US government has been closed and there is little chance that the White House and the Congress will reach a consensus before October 17 to raise the debt ceiling, leaving investors holding to the sidelines. LME lead was capped under the 5-day moving average after opening at USD 2,058.8/mt on Monday, moving in a USD 2,045-2,070/mt range during the session. Finally, LME lead finished USD 8.5/mt higher at USD 2,062.5/mt. Trading volumes shrank 1,077 lots to 2,368 lots, but positions added 1,614 lots to 124,000 lots. Markets will continue to closely watch the developments in US debt ceiling talks and LME week to be held this week.
The US dollar index closed lower at 79.9 due to deadlocked US debt talks. December silver on the COMEX closed 59.8 cents/oz or 2.75% higher at USD 22.35/oz.
LME lead is expected to vacillate between USD 2,055-2,075/mt on Monday, while SHFE 1312 lead contract will likely fluctuate in a RMB 14,080-14,160/mt band. Spot lead prices are forecasted at RMB 14,000-14,150/mt.