EUROPEAN COMMODITIES UPDATE: Crude declines alongside sentiment while gold awaits PCE

Crude Oil: WTI Oct -0.5% Brent Nov -0.6%

• Crude futures are taking a breather after gaining yesterday, owing to geopolitics on what was otherwise a choppy performance, with the benchmarks rising yesterday as German Chancellor Merz said there will be no meeting between Russian President Putin and Ukrainian President Zelensky.


• Lack of progress towards a deal keeps the prospect of further sanctions and secondary tariffs alive.


• WTI currently resides in a 64.03-64.41/bbl range while Brent sits in a USD 68.03-68.39/bbl range.

Precious Metals: Gold -0.1%, Silver -0.3%, Palladium -0.3%

• Spot gold faded some of the prior day's advances after ascending above USD 3,400/oz amid a softer dollar and yields.


• Spot gold is tentative ahead of Fed Governor Cook's hearing (10:00EDT/15:00BST) and with Fed's preferred monthly PCE data due later - headline PCE is expected to rise by +0.2% M/M (prev. +0.3%), with the annual rate unchanged at 2.6% Y/Y; the core PCE rate is seen rising +0.3% M/M (prev. 0.3%), while the annual rate of core PCE is seen rising to 2.9% Y/Y from 2.8%. In his remarks last week, Fed Chair Powell said that the latest data indicate 12-month PCE rose to 2.6% in July, while the core rate will rise to 2.9% Y/Y. (Full Preview available on the Newsquawk headline feed).


• 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%

• Mixed trade across base metals amid a choppy dollar and tentative mood across markets.


• Copper futures hold on to recent spoils and linger around the prior day's best levels owing to the positive mood in its largest buyer, China.


• 3M LME copper resides in a USD 9,839.00-9,924.00/t.

29 Aug 2025 - 10:10- MetalsGeopolitical- Source: Newsquawk