Metals Markets Rally on August 7 Amid Record US Dollar Index

The metals market saw mostly rising prices as of the midday close on August 7. Base metals in China, such as SHFE copper and zinc, rose by over 0.5% and 1.35%, respectively. The SHFE nickel price also increased by 0.44%. However, SHFE tin fell by 0.3%. In addition to base metals, other commodities like lithium carbonate and polysilicon saw significant gains, with prices rising by 1.23% and 5.03%, respectively.

Overseas base metals, as tracked by the London Metal Exchange (LME), also rose in value, with LME copper up 0.69%. The price of platinum fell by 1.71%, while palladium dropped by 1.55%.

The US dollar index rose by 0.02% to 99.96, and the market focused on upcoming US non-farm payrolls data for clues about interest rate decisions from the Federal Reserve (Fed). The probability of the Fed keeping interest rates unchanged in September is 45%, while the chance of a cumulative 25 basis point rate hike is 55%. CME's 'Fed Watch' also indicated that the probability of maintaining rates through October is 31%.