EUROPEAN COMMODITIES UPDATE: Crude oil firmer while spot gold inches towards USD 3k/oz

Crude Oil: WTI Dec +1.3%/Brent Jan +1.2%

• Both benchmarks are firmer as they coattail on the risk appetite across the market and despite the firmer Dollar. Notable newsflow for the complex is on the lighter side this morning.


• Some of the upside could be attributed to the optimism seen in China amid speculation that the PBoC could opt for RRR cut before the weekend, although this speculation is derived from PBoC comments yesterday reiterating support pledges and stating that it will lower rates and the RRR at a 'proper time' (prev. appropriate time), keep liquidity ample and guide social financing costs lower - that being said, some believe China would want to gauge the impact of Trump policies before preemptively announcing support.


• Yesterday, it was reported that Russian President Putin and Saudi Arabia's Crown Prince MBS discussed cooperation in OPEC+, as well as US-Russia ties and the Ukraine conflict.


• In geopolitics, Russian President Putin supported the idea of a ceasefire but stressed that the ceasefire must lead to a final settlement of the conflict and solve the root causes of the conflict, while Ukrainian President Zelensky claimed that Russian President Putin is preparing a rejection of the ceasefire proposal but is scared to say this directly to US President Trump.


• WTI Apr sits between USD 66.67-67.44/bbl while Brent May resides in a USD 70.00-70.72/bbl.

Precious Metals: Gold +0.3%, Silver +0.5%, Palladium +0.5%

• Broad-based gains are seen across precious metals despite the firmer Dollar and broader risk appetite, with the complex seeing momentum as spot gold eyes USD 3,000/oz to the upside.


• Spot gold currently resides in a USD 2,980.92-2.998.55/oz range at the time of writing.

Base Metals: 3M LME Copper +0.4%

• Gains across the board but to varying magnitudes, although copper prices have waned off best levels and trade closer to session lows after the optimism seen during Chinese hours amid the aforementioned RRR-cut speculation.


• Aside from that, newsflow for the complex has been light with traders keeping tabs on the demand side of the equations following the new US administration's tariff policy.


• 3M LME copper currently resides towards the bottom end of a USD 9,770.90-9,850.53/t range.

14 Mar 2025 - 10:00- ForexGeopolitical- Source: Newsquawk