EUROPEAN COMMODITIES UPDATE: Crude lifts incrementally off Wednesday's lows, XAU fares better as the USD pauses for breath

WTI/Brent: -0.1%/U/C

• Flat. Came under pressure on Wednesday evening given the hawkish reaction to the FOMC and ongoing USD upside. USD strength which has faded slightly in European hours which has seemingly allowed energy to lift off lows.
• However, this still leaves the benchmarks almost USD 1/bbl from Wednesday’s USD 70.80/bbl and USD 74.20/bbl respective peaks for WTI and Brent.
• Drivers this morning, ex-Central Banks, somewhat light with but geopols still very much in focus as Russian President Putin begins his annual address. So far, much of the focus has been on domestic matters with only limited references to Ukraine where he said the operation is changing significantly.

Gold: +1.3%

• Firmer, lifted off USD 2584/oz post-Fed lows as the USD comes off highs and the risk tone in Europe sours. However, the recovery to around USD 22/bbl above the USD 2600/oz mark leaves the metal a similar distance from Wednesday’s USD 2651/oz peak.
• Ahead, it remains to be seen how the metal will fare as US futures point to tentative upside, though still with some distance to go to recoup FOMC related pressure. While the docket ahead features Q3 US PCE/GDP data alongside weekly claims.
• In terms of resistance levels the 21-DMA resides at USD 2650/oz before the 50-DMA at USD 2670/oz.

3M LME Copper: -1.6%

• Base metals are in the red, alongside the slump in sentiment and the relatively strong Dollar; albeit, the USD strength has unwound a touch in the European morning.
• 3M LME copper has traversed the bottom end of the day’s USD 8,906.50-961.50/oz range thus far.