EUROPEAN COMMODITIES UPDATE: Crude on the backfoot while XAU resumes its climb

WTI/Brent: -1.0%/-1.0%

• Initially quiet and rangebound trade in a c. USD 0.50/bbl range after the benchmarks closed out yesterday’s sessions with modest gains in proximity to highs of USD 65.05/bbl and USD 69.33/bbl for WTI and Brent respectively.


• Since, benchmarks have pulled back and are lower by c. USD 0.60/bbl at the low-end of respective USD 64.29-93/bbl and USD 68.91-69.33/bbl parameters. Market-moving energy newsflow has been light this morning; instead, the pressure seems to be a function of the increasingly downbeat equity risk tone.


• The key geopolitical risk to come out from the early parts of the European session were reports of unidentified drones above Aalborg airport in Denmark, following another incident earlier in the week. The Danish defence minister commented that there was no evidence to say there is a link to Russia. Crude benchmarks didn’t react to this news.

Gold: +0.6%

• Rangebound trade early in the session with a lift in prices coinciding with the SNB rate decision. A rebound that took spot gold from modest gains around the USD 3746/oz mark to a USD 3761.6/oz peak, but shy of USD 3779/oz and USD 3791/oz highs from the last two sessions.


• At the same time, silver saw a more pronounced rally lifting from USD 44.02/oz to a USD 44.87/oz peak, it has since trimmed modestly but still holds onto gain in excess of 1.5% on the session.


• The market is awaiting a heavy data docket coming from the US, with durable goods, Q2 GDP, initial jobless claims and another packed Fed speaker slate.

Copper: +0.7%

• Firmer, extending the aggressive bid seen in yesterday’s session following news from miner Freeport McMoran who declared force majeure in relation to contracts fulfilled by its Indonesian Grasberg mine. A facility that accounts for c. 3% of global supply.


• Yesterday, 3M LME Copper hit a USD 10.37k/T peak. Today, the move has continued to an incremental breach of USD 10.5k/T, though we are yet to get any traction above that figure. Benchmark is now back to levels from mid-May and now looks to resistance at the YTD high of USD 10.925k/T.


• More recently, but continuing with the supply side of the equation, China is looking into measures to strengthen regulation around copper smelting production capacity.

25 Sep 2025 - 10:20- ForexEU Research- Source: Newsquawk