Metal Investments

The Federal Reserve Decision

30. April 2008

Monday, 11:10am GMT


  • The Fed is expected to reduce the interest rate by quarter-point to 2.0 percent. The markets will be closely eyeing the Fed accompanying statement for signs as to its attitude towards future cuts. Any signal on a pause in the current rate-cutting cycle will support the U.S. dollar and affect price of a wide range of commodities

  • Oil fell for a second day on strong dollar reducing the appeal of commodities and a strike that has cut nearly half Nigeria's production will end

  • LME base metals are mixed morning with Copper trading at $8525. The copper market is still underpinned by a strike in major producer Chile, but the performance of the U.S. dollar will be bigger influence on trading sentiment.LME Copper stocks are up by 875 tons to 110,525 tons.

  • Aluminium is at $2953 with LME stocks down by 1400 tons to 1,040,675 tons. Sustained close below $3000 will indicate losses to $2800.

  • Gold is at $863.80. Gold hit a one-month low on yesterday on a firmer dollar and weaker oil prices. Gold takes its cue from movements in the dollar because of its role as an alternative investment to currencies, stocks and bonds. The outcome of the Fed meeting would set the tone for currencies and precious metals this morning

  • The FTSE 100 index is down 41 points to 6048.

    LME Metals 3 Month Prices, 11:20am GMT

    Bid Offer Change *
    Copper $8511 $8518 - $22
    Aluminium $2952 $2955 - $4
    Lead $2710 $2718 - $8
    Zinc $2235 $2242 - $13
    Nickel $28650 $28850 + $100
    Tin $23500 $23550 - $50

    * Change from previous day's close