SHANGHAI, Oct. 23 (SMM) – LME lead prices overnight started at USD 2,189.8/mt in Asian trading hours and moved in USD 2,185-2,190/mt range in the morning session, and with light transactions as investors awaited the US nonfarm payrolls result. During the afternoon trading session, LME lead prices rallied to USD 2,200/mt due to stronger buying support. The US nonfarm payrolls released in the evening rose by 148,000 in September, far less than expectations for an increase of 180,000. The result has fallen short of forecast for a third consecutive month, enhancing the market expectation that the US Federal Reserve will not scale back its QE policy before 2014. In response, LME lead prices recorded a recent new high of USD 2,210/mt, but later edged lower due to profit taking, and finally closed at USD 2,198/mt, up only USD 7.5/mt. Trading volumes gained by 159 lots to 4,815 lots, while positions grew by 368 lots to 121,277 lots, and LME lead inventories were flat at 232,825 mt. 

The US dollar index finished at 79.24, down 0.55%, while the COMEX silver contract for December delivery rose by USD 0.417/oz to USD 22.70/oz. 

LME lead is expected to maintain its rising momentum due to rising market expectations that the US will not soon taper its stimulus measures triggered by disappointing US nonfarm payrolls, and LME lead prices also have pushed through the previous resistant level. LME lead prices will hover between USD 2,200-2,230/mt, while the most active SHFE lead prices will hover in RMB 14,450-14,550/mt range and spot prices are expected between RMB 14,250-14,350/mt on Wednesday.