EUROPEAN COMMODITIES UPDATE: Base metals surge on Chinese stimulus hopes

Crude Oil: WTI Aug -0.6%, Brent Sep -0.4%

• Softer trade across crude with sentiment weighed on by the US tariff policy as President Trump continues releasing letters to countries, but with tariffs broadly worse than expected.


• Meanwhile, seemingly constructive Middle East geopolitics is also weighing on prices, with US President Trump saying, regarding a Gaza ceasefire, that they have a chance this week or next week and there is a very good chance of a settlement this week on Gaza.


• No action in prices was seen on speculation that a Chinese high-level meeting will be held next week to help revive the property sector, according to Bloomberg.


• Ahead, the OPEC World Oil Outlook will be released, although this is the outlook that spans all the way to 2050, which in this fluid market may prove futile.


• WTI resides in a USD 67.95-68.57/bbl range while its Brent counterpart trades between USD 69.86-70.42/bbl.

Precious Metals: Gold +0.4%, Silver +0.6%, Palladium +0.5%

• Modest gains across precious metals, albeit with little in the European morning driving the price action.


• Spot gold resides in a USD 3,311.52-3,329.39/oz range after topping yesterday's peak (USD 3,316.79), with the yellow metal eyeing its 21 DMA (USD 3,345.61/oz today), which acted as resistance on Monday and Tuesday.

Base Metals: 3M LME Copper +0.3%

• Firmer gains across base metals with upside also facilitated by speculation that a high-level Chinese meeting will be held next week to help revive the property sector, according to Bloomberg.


• Elsewhere, President Trump confirmed a 50% tariff on US copper imports, effective August 1st, citing national security concerns. Trump emphasised copper’s critical role in defence and technology sectors, blaming previous administrations for weakening the US copper industry and promising to restore its dominance. Bloomberg reports that copper traders are rushing to deliver shipments into Hawaii and Puerto Rico to beat Trump’s planned 50% tariffs starting on August 1st, with futures in NY surging to a 25% premium over global prices, creating a profitable arb trade that risks losses if shipments miss the deadline.


• 3M LME copper trades in a USD 9,635.20-9,711.15/t range at the time of writing.

10 Jul 2025 - 10:05- ForexGeopolitical- Source: Newsquawk