EUROPEAN COMMODITIES UPDATE: A choppy start for crude while XAU eyes Monday's best & the 50-DMA

WTI/Brent: +0.1%/+0.3%

• A relatively choppy start to the session, though crude is still contained overall and essentially unchanged in c. USD 0.60/bbl parameters with the highs markedly shy of Monday’s peaks.
• Specifics are fairly light with the broader macro narrative driving action as we await any update on the subject of US tariffs which drove pronounced two-way action in markets on Monday.
• Barring an update on the above, impetus will likely come from the US session when we get Fed speak and a handful of US data prints incl. JOLTS and ISM Services.
• In terms of crude developments, South Sudan is to recommence production at a rate of 90k/BPD while China’s Shandong port has banned the docking of US-sanctions oil vessels, according to Reuters citing sources.

Gold: +0.3%

• Firmer but only modestly so. Upside as a result of the soft USD and relatively tepid risk tone thus far.
• Furthermore, a modest bullish reaction was seen on China’s monthly reserves figures, which showed the second consecutive monthly increase in gold reserves.
• At the upper-end of USD 2632-2646/oz parameters, which is entirely within but towards the top-end of Monday’s parameters; that session’s peak stands at USD 2649/oz with the 50-DMA above at USD 2650.9/oz.

Copper: +0.2%

• Modestly firmer, taking impetus from the softer USD and perhaps from the European risk tone, though that has been slightly more tentative thus far.
• 3M LME Copper holding above the USD 9k handle, currently trading at its highest point since mid-December with resistance at USD 9050 and USD 9100 if the move continues.
• Upside which also comes as the region manages to largely shrug off the downbeat handover from China, with the region weighed on overnight after US President-elect Trump pushed back on the favourable WaPo piece on tariffs; as a reminder, Copper benefited from the initial article as the metal was one of the mentioned strategic targets for tariffs.