EUROPEAN COMMODITIES UPDATE: Crude choppy with an upward bias but gold waning amid a stronger dollar

Crude Oil: WTI Aug +0.3%, Brent Sep +0.3%

• Notwithstanding the rebound in the Dollar, the crude complex is slightly firmer, with the magnitude of gains in line with the broader upside seen across European equities.


• Newsflow this morning has been light, whilst prices also overlook the surprise build in Private Inventories last night (Crude +0.7mln vs exp.-1.8mln), with participants eyeing today's DoEs for confirmation.


• Elsewhere, US President Trump on Tuesday said they will fill the SPR when the market is right.


• Participants are also gearing up for this weekend’s OPEC+ meeting, which is expected to once again increase supply, although Goldman Sachs said they do not expect a large market reaction if the OPEC+ 8 decide to increase production on Sunday, as consensus has already shifted towards this outcome.


• WTI resides in a USD 65.23-65.79/bbl range while its Brent counterpart trades in a USD 66.94-67.48/bbl range.

Precious Metals: Gold U/C, Silver U/C, Palladium +0.7%

• Mixed trade across the precious metals with spot gold and silver waning from their best levels set in APAC trade as the Dollar gained ground this morning.


• Traders are on standby for the next macro inflection point, with US ADP due today and the US jobs report due tomorrow as opposed to the typical Friday amid the 4th of July.


• Spot gold resides in a USD 3,327.66-3,345.05/oz range (vs yesterday's USD 3,302.39-3,358.08/oz parameter), with the 50 DMA seen at 3,321.48/oz today.

Base Metals: 3M LME Copper +0.1%

• Base metals are mostly but modestly firmer with upside capped by the rising Dollar.


• For copper, reports highlight that informal miners in Peru are blocking roads, disrupting copper transport from mines, including MMG Ltd. and Hudbay Minerals. The miners are protesting to demand a regulatory framework tailored for small-scale mining, according to Bloomberg.


• Elsewhere, it was also reported that LME on-warrant aluminium stockpiles have risen to the highest this year.


• Iron ore futures climbed overnight, with Dalian prices closing +1.7% and Singapore prices +1.8% as traders cite lower shipments from Australia and Brazil, whilst Everbright suggested that hot metal output (gauge for iron ore demand) continued to increase M/M.

02 Jul 2025 - 10:15- MetalsEU Research- Source: Newsquawk