EUROPEAN COMMODITIES UPDATE: Gold resumes upside amid ongoing trade uncertainty

Crude Oil: WTI Jun +1.0%, Brent Jun +0.9%

• A firmer session this morning following yesterday's slump in prices on account of the OPEC+ discord and after Kazakhstan said it cannot lower oil output and prioritises domestic interest over the cartel's.


• WTI and Brent June futures settled lower by USD 1.40/bbl and USD 1.32/bbl respectively.


• Analysts at ING say "Earlier this month, OPEC+ surprised the market by increasing supply by 411k b/d in May, more than the 138k b/d planned. This larger-than-expected increase comes as demand estimates are being cut amid ongoing trade tensions. Further disagreement between OPEC+ members is a clear downside risk, as it could lead to a price war."


• Elsewhere, in geopolitics, Ukraine's air force said Russia launched 215 drones and missiles at the country during its overnight attack, with the main target being the capital Kyiv. It said the attack involved 11 ballistic missiles, 55 cruise missiles, four glide bombs and 145 drones.


• Prices waned off best levels as the complex conformed to the broader risk tone.


• WTI resides in a USD 62.11-63.00/bbl range while its Brent counterpart resides in a USD 65.95-66.81/bbl range.

Precious Metals: Gold +1.4%, Silver -0.6%, Palladium -0.2%

• Once again a mixed picture across precious metals with spot gold now the gainer whilst spot silver and palladium falter.


• Little new to add aside from the ongoing theme of tariff uncertainty, with investors rushing back into the yellow metal following two days of heavy losses from the record high at USD 3,500/oz.


• Spot gold currently resides in a USD 3,305.37-3,367.69/oz parameter and remains within yesterday's USD 3,260.19-3,386.77/oz.

Base Metals: 3M LME Copper +0.3%

• Modestly firmer trade on the back of a softer Dollar but upside remains capped by lingering trade uncertainty.


• Anglo American (AAL LN) Q1 2025 Production Report: Copper -15% Y/Y, Iron Ore +2% Y/Y, Manganese ore -60% Y/Y, Platinum group metals -17% Y/Y, Steelmaking coal -41% Y/Y, Nickel +3% Y/Y, Diamonds -11% Y/Y.


• MMG (1208 HK) says 2025 production guidance remains unchanged, with quarterly total copper production of 118,213t. Assessing a potential upward revision to the lower end of Las Bambas production forecast.


• 3M LME copper resides in a USD 9,352.03-9,413.80/t range at the time of writing.

24 Apr 2025 - 10:20- MetalsEU Research- Source: Newsquawk