EUROPEAN COMMODITIES UPDATE: Crude recovers from Tuesday's pressure, metals contained

WTI/Brent: +0.8%/+0.7%

• In the green, recouping almost all of the downside seen on Tuesday though action is fairly modest thus far as the risk tone remains tentative into the FOMC.
• Upside which has been helped by a larger than expected draw in the Private Inventory release and we now await the EIA figures for confirmation; consensus for the headline crude measures points to a 1.635mln draw (prev. -1.425mln, Private -4.7mln).
• Geopols remains in focus with reports indicating that the Israeli PM Netanyahu is on his way to Cairo for Gaza ceasefire talks; however, given the two-way updates on this earlier in the week we await further details.

Gold: +0.1%

• Incrementally firmer but yet to deviate significantly from the unchanged mark with XAU posting a very narrow USD 2642-2651/oz band for the session.
• Specifics for the yellow metal have been limited as we await the FOMC policy announcement this evening, an announcement which could dictate the yellow metal’s fortunes for the remainder of the session depending on the extent of the reaction.
• Elsewhere, UBS retains its bullish view on Gold for the next 12-months, forecasts XAU hitting USD 2.9k/oz by end-2025.

3M LME Copper: U/C

• 3M LME Copper is contained, echoing the risk tone into the aforementioned risk events. Holding at the USD 9k mark but did briefly dip to an incremental fresh WTD low at USD 8.95k overnight.
• As above, specifics have been light with the complex very much biding time ahead of the FOMC.