EUROPEAN COMMODITIES UPDATE: Commodities remain subdued following dollar-led movements in yesterday’s session

Crude Oil: WTI -0.4%, Brent -0.5%

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  Crude benchmarks are rangebound following yesterday’s selloff as easing Middle East tensions and the outlook for supply, in addition to a stronger dollar, weighed on benchmarks. WTI and Brent extended on yesterday’s low, dipping to a low of USD 61.04/bbl and USD 64.69/bbl respectively, before bouncing back higher and currently trading relatively flat on the session.


• Late in yesterday’s session, Israel’s government approved the Gaza plan for the release of all hostages, as expected. The next step is for the hostage exchange, which is expected to take place early next week as US President Trump arrives in Israel.


• Despite easing tensions in the Middle East, attacks continue to happen in Russia and Ukraine. The Ukrainian Energy Ministry said Russian forces launched mass attacks on Ukrainian energy targets and that electricity was cut off in eastern Ukraine entirely.


• US President Trump has floated the idea of imposing more sanctions on Russia to force a ceasefire.

Precious Metals: XAU +0.4%, XAG +4.0%

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  Spot XAU consolidates in a c. USD 50/oz range following yesterday’s selloff back below the USD 4k/oz level, as the US dollar strengthens for the fourth straight day.


• Amid muted action in the yellow metal, XAG has reversed the prior day’s selloff and currently c. USD 0.50/oz away from a new ATH.


• Recent market consensus was to short the dollar and move to the perceived safety of Bitcoin and precious metals as the Fed is expected to cut rates and the growing fiscal concerns from major economies. But with recent political developments in France and Japan and hawkish commentary from Fed officials, short positioning has started to unwind as the greenback attempts to re-establish itself as a safe haven.

Base Metals: 3M LME Copper -0.6%

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  Base metals continue to retrace on yesterday’s gains as production outages remain the key theme in the copper market. China’s re-entry into the markets helped 3M LME Copper peak at USD 11k/t, but as the greenback continued to strengthen, copper prices fell lower.


• 
  3M LME Copper continued to a low of USD 10.71k/t before bouncing back and is currently trading back above USD 10.8k/t.


• Codelco, the world’s top producer of the brown metal, recorded its worst monthly copper output in decades after its Chilean mine collapsed in July.

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