EUROPEAN COMMODITIES UPDATE: Crude choppy, gold on either side of USD 3,400/oz, base metals mixed in narrow ranges

Crude Oil: WTI Oct -0.7% Brent Nov -0.7%

• Softer trade across crude contracts, although some upside was seen shortly after reports that the EU mission HQ in Kyiv was struck by Russian missiles, although delegate staff are safe according to the European Commission, which prompted an unwind of those earlier modest gains.


• Furthermore, Hungary's MOL says crude supplies have arrived in Hungary and Slovakia after the Druzhba pipeline restarted; the Slovak Economy Minister says supplies have resumed to the nation.


• Some upticks were seen recently alongside reports from IRNA that "It seems that Europe will activate the "snapback" mechanism against Iran this week".


• Crude futures gradually pulled overnight amid a lack of energy-specific drivers and after having gained yesterday amid anticipation of further sanctions on Iran and following a larger-than-expected weekly EIA headline crude draw.


• WTI currently resides in a 63.48-64.00/bbl range while Brent sits in a USD 67.40-67.48/bbl range.

Precious Metals: Gold +0.1%, Silver +0.6%, Palladium +0.6%

• Spot gold edges higher in quiet trade to test USD 3,400/oz to the upside with the yellow metal in a USD 3,384.62-3,401.11/oz range at the time of writing.


• Upward tilt in prices also comes amid narrowing prospects of a Russia-Ukraine peace deal, with both sides still carrying out heavy strikes.


• Next level to the upside is the high set on August 8th, at USD 3,409.43/oz.

Base Metals: 3M LME Copper -0.6%

• Flat/mostly firmer trade with no real conviction amid a tentative Dollar and a similarly non-committal risk tone.


• Copper futures trade sideways with demand constrained after this week's declines.


• 3M LME copper trades in a USD 9,775.75-9,833.00/t range.


• Dalian iron ore prices ended the overnight session +1.7%, with traders citing China's push to lower steel output in a bid to tackle overcapacity.

28 Aug 2025 - 10:20- MetalsGeopolitical- Source: Newsquawk