EUROPEAN COMMODITIES UPDATE: Base metals jump following positive commentary via the Chinese Politburo

WTI/Brent: +1.2%/+1.1%

• WTI and Brent began the European session on a slightly firmer footing, with the complex lifted amid geopolitical uncertainty in the Middle Eastern region after Syrian fighters toppled the Assad regime. The NYT also reported that Israeli ground forces advanced beyond the demilitarized zone on the Israel-Syria border over the weekend. Outside of the Middle East, US president-elect Trump said there should be an immediate ceasefire and negotiations in Ukraine; this is time for Russia's Putin to act, and China can help, via Truth Social.


• On the demand-side, Chinese inflation metrics printed below expectations, whilst the PPI figures were a little better than feared.


• Just ahead of the European cash open, the Chinese Politburo meeting sparked risk-on sentiment across financial markets, with the oil complex also benefiting. Within the readout, it noted that China’s fiscal policy is to be more proactive next year and the monetary policy is to be moderately loose.


• As it stands, Brent’Feb 2025 trades near the upper end of a USD 70.92-72.15/bbl range. WTI’Jan 25 holds just above USD 68/bbl in a current USD 67.08-68.28/bbl confine.

Gold: +0.9%

• In a similar vein to the above, spot gold began the European session on a firmer footing with sentiment lifted amid the geopolitical uncertainty in the Middle Eastern region. Alongside this, Reuters reported that the PBoC resumed gold purchases in November after a six-month hiatus.


• Since, the yellow-metal moved at the whim of the Dollar; with upside seen following the readout of the Chinese Politburo meeting. In recent trade, gold has been trading relatively rangebound, despite the Dollar trading at incremental session lows.


• XAU currently sits at the upper end of a USD 2,627.62-2,651.22/oz range, and just shy of its 50 DMA at 2,667.96. It can be noted that trough for the day coincides with its 21 DMA.

Base metals HG Copper +2%

• Base metals were mixed overnight, with copper initially benefiting from the better-than-feared Chinese PPI figures; thereafter the red-metal moved lower in tandem with a pick-up in the Dollar.


• As mentioned above, the Chinese Politburo meeting lifted sentiment, which sparked considerable upside in metals prices across the board. HG Copper soared just north of 2% to a session high of 4.22/lb vs today’s trough at 4.12/lb. Palladium futures also jumped to session highs, to a trade at a current USD 982/oz, just shy of its 200 DMA at 988/oz.

09 Dec 2024 - 10:05- MetalsGeopolitical- Source: Newswires