EUROPEAN COMMODITIES UPDATE: Commodities trade rangebound as markets wait for next round of US-China talks

Crude Oil: WTI/ Brent -0.4%

• 
  Crude benchmarks falling lower despite reports over the weekend that Hamas violated the ceasefire agreement. WTI and Brent briefly extended Friday’s high on the open, peaking at USD 57.43/bbl and USD 61.55/bbl respectively before falling back into Friday’s range and troughing at USD 56.57/bbl and USD 60.68/bbl respectively. Benchmarks are currently trading near session lows at USD 56.90/bbl and 61.07/bbl respectively.


• Over the weekend, Israel’s Channel 12 reported that Israel was attacking Gaza as Hamas carried out multiple attacks against Israeli forces beyond the ‘yellow line’, violating the ceasefire. However, later reports said re-enforcement of the ceasefire is underway resulting in the relatively muted reaction in crude benchmarks.


• As for Ukraine-Russia, the FT reported that President Trump told his Ukrainian counterpart Zelensky that he doesn’t intend to provide missiles, at least for now. Trump added that Zelensky should accept Putin's terms, after Putin warned he would "destroy" Ukraine, if it did not agree.


• On trade talks, the next round of US-China trade talks is set for this week as US Treasury Secretary Bessent to meet Chinese Vice Premier He Lifeng in Malaysia this week.

Precious Metals: XAU +0.4%, XAG +0.6%

• 
  Spot XAU oscillating in a USD 4219-4274/oz band as precious metals consolidate following Friday’s selloff that saw XAU and XAG drop as much as 3.3% and 5.9% respectively.


• Investors note that with Diwali season ending, US credit quality concerns receding and relief in US-China tensions, the yellow metal could see a profit-taking pullback into year-end. In addition, US treasuries have also been moving higher, which could see momentum in the debasement trade wane.

Base Metals: 3M LME Copper +0.7%

• 
  Base metals are trading higher after the latest Chinese data (GDP, industrial production, and retail sales) either matched or exceeded expectations. In addition, the country’s National Bureau of Statistics said the FY target of 5% growth is still on track.


• 
  3M LME Copper extended Friday’s high during the APAC session, forming a peak at USD 10.73k/t, before falling to USD 10.65k/t and oscillating between these parameters.


• Easing US-China tensions have also helped the red metal higher, as US President Trump believes that the US can make a deal with China on soybeans and wider topics.

20 Oct 2025 - 10:05- ForexEU Research- Source: Newsquawk