EUROPEAN COMMODITIES UPDATE: Crude takes a breather after yesterday's volatile session; spot gold holds an upward bias after reaching levels near USD 3,550/oz

Crude Oil: WTI Oct -0.5% Brent Nov -0.5%

• Softer trade this morning after whipsawing yesterday amid a stronger dollar and with the US imposing sanctions targeting Iranian oil.


• Newsflow for the complex has been quiet, although traders are keeping tabs on developments in the east, with focus overnight on the Chinese military parade - but more so the presence of Russian President Putin and North Korean leader Kim alongside Chinese President Xi.


• Aside from that, energy newsflow has been quiet this morning. Focus remains on geopolitics, with Israel interception missiles from Yemen whilst Russia targeted Ukraine with 24 missiles and 502 drones overnight.


• On the data docket, participants will have to wait an additional day for this week's inventory data owing to the recent Labor Day holiday, with Private Inventories due today and the DoE's on Thursday at 17:00BST/12:00EDT.


• WTI currently resides in a 65.20-65.72/bbl range while Brent sits in a USD 68.76-69.24/bbl range.

Precious Metals: Gold +0.2%, Silver -0.1%, Palladium +0.3%

• Mixed trade across precious metals in narrow parameters. Spot gold holds a mild upward bias but printed fresh record near the USD 3,550/oz level overnight despite recent dollar strength.


• The rise in gold has been attributed to a concoction several factors including 1) Fed independence, 2) geopolitics, 3) UK debt issues, 4) French political turmoil


• Elsewhere, the World Gold Council said it is to launch a digital form of gold, according to FT.


• Spot gold resides in a USD 3,526.54-3,547.33/oz range at the time of writing, with the next upside level the USD 3,550/oz mark.

Base Metals: 3M LME Copper +0.2%

• Upward tilt across the board with prices supported by a stable dollar and with sentiment also net-positive.


• 3M LME copper breached USD 10k/t to the upside and resides in a USD 9,935.80-10,038.13/t range at the time of writing.


• Iron ore however ticked higher overnight, with the front-month Dalian contract ending daytime trade +0.7%. The contract extended on the prior day's gains with demand also released after being suppressed during the Chinese military parade, which saw top Chinese steel hub Tangshan hit with production curbs in a bid to ensure better air quality for the parade.


• Elsewhere, Goldman Sachs lifted its average price forecast for Q2 to USD 95/t from USD 90/t.

03 Sep 2025 - 09:55- MetalsEU Research- Source: Newsquawk