EUROPEAN COMMODITIES UPDATE: Crude holds on to Monday's gains, Gold benefits from the soft European equity tone

WTI/Brent: +0.2%/+0.2%

• Crude prices are indecisive on a day when two major events, US-China talks and the Iranian nuclear counteroffer, are taking place.


• Ahead of the Iranian proposal, both sides confirmed the sixth round of nuclear talks will take place this weekend. The timing is unclear.


• Furthermore, US President Trump continued his firm tone on Iran, noting that the nation cannot seek enrichment, and the consequences are “very, very dire” if they were to do so. Additionally, Israeli Broadcasting Authority sources estimated that ‘if nuclear talks fail, Israel would have to decide whether to attack Iran’. Note, this report comes after a meeting between Trump and Israeli PM Netanyahu on Monday, where Brent closed at its highest since late April, at USD 66.47.


• As mentioned the other major catalyst for today is US-China, discussed more in Gold below.


• In terms of price action, Brent is currently trading around Monday’s close, just below the day’s USD 67.40 high.

Gold: +0.2%

• Spot gold is looking to build on Monday’s gains, as ongoing US-China tariff negotiations continue to support safe-haven demand.


• On the demand side, the US and China are convening for a second day of tariff negotiations, where some suggest the US will send more chips to China (touted to not be NVIDIA's H20) while China may reciprocate with rare earth shipments to the US; the start of talks was pushed back by 30 minutes to 10:30BST, no reason given for the slight delay.


• However, gains are being capped somewhat by a firmer dollar (DXY +0.2%).


• Looking to the rest of the week, we are expecting metrics including US CPI and PPI on Wednesday and Thursday, respectively.

Other Metals: Palladium -1.2%, 3M LME Copper: -0.2%

• Elsewhere, metals are broadly lower, tracking the mood seen in Gold ahead of further trade/mineral-specific updates.


• EV sensitive metal Lithium is the outperformer, however, Palladium, used only in combustion cars, is suffering, given optimism on a rare earth deal. The latter is lower by -1.3%, at USD 1,080.50/oz.


• Copper has been rangebound, though is ultimately lower after the prior session of gains. The industrial metal looks to test the USD 9760 mark, and sits within a USD 9,724-9,782.55 range.

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