EUROPEAN COMMODITIES UPDATE: Commodities rebound as US President Trump attempts to ease worries of further trade escalation

Crude Oil: WTI +1.3%, Brent +1.4%

• 
  Crude benchmarks climb as markets digest the softening tone from US President Trump following increased trade tensions between China and US, where Trump threatened to impose an additional 100% tariff on China.


• After the largest selloff on Friday since late June, WTI and Brent have bounced and peaked shy of USD 60/bbl and USD 64/bbl respectively. Benchmarks currently oscillating in a tight c. USD 0.40/bbl range.


• Over the weekend, US President Trump posted a statement saying that the US wants to help China, not hurt it. This hints at opening the door to a China deal, with China’s Foreign Ministry also urging the US to promptly correct its “wrong practices”.


• In Gaza, the hostage releases have started to get underway, with Hamas releasing all living hostages, according to Kann News.

Precious Metals: XAU +1.5%, XAG +2.3%

• 
  Precious metals continue to break ATHs, with spot XAU peaking at USD 4078/oz during the APAC session and currently trading near its peak.


• Shrinking stockpiles of silver in London, in addition to the rising debt concerns and debasement from the dollar, have helped reinforce the rally in XAG. It has been calculated that “free float” silver has dropped to just 200mln ounces, down 75% from a high of over 850mln ounces in mid-2019.


• Further upside is still the theme in precious metals, with BofA lifting XAU and XAG forecasts to USD 5k/oz and USD 65/oz respectively.

Base Metals: 3M LME Copper +1.5%

• 
  Base metals rebound as US President Trump plays down tariff scare. 3M LME Copper gapped higher and peaked at USD 10.67k/t, before finding support at USD 10.5k/t and currently oscillating between parameters formed early this session.


• LME Week starts this week, with focus on the factors that have driven many metals to ATHs in recent months. Drivers include supply disruptions, investor interest as an alternative to the dollar and long-term demand driven by electrification.

13 Oct 2025 - 09:55- ForexGeopolitical- Source: Newsquawk