EUROPEAN COMMODITIES UPDATE: Industrials trade softer on risk aversion, gold holds its ground despite Dollar strength

Crude Oil: WTI Oct -0.3% Brent Nov -0.3%

• Crude futures have tilted lower following a flat overnight session and after retreating throughout the prior day and with demand not helped by the narrower-than-expected headline crude draw in private sector inventory data, while there were also bearish views on oil including from US President Trump who thinks oil will fall beneath the USD 60/bbl level soon and with Goldman Sachs forecasting Brent to decline to the low USD 50s by late 2026.


• US Private Energy Inventories (bbls): Crude -1.0mln (exp. -1.9mln), Distillate -1.5mln (exp. +0.9mln), Gasoline -2.1mln (exp. -2.2mln), Cushing -0.5mln - traders on the lookout for confirmation.


• In geopolitics, US President Trump said he is talking about economic sanctions on Russia if there is no ceasefire. On that note, Ukrainian President Zelensky said Russians are sending negative signals about peace in Ukraine.


• WTI currently resides in a 62.99-63.46/bbl range while Brent sits in a USD 66.40-66.91/bbl range.

Precious Metals: Gold -0.3%, Silver -0.6%, Palladium -0.1%

• Spot gold pulled back from near the USD 3,400/oz level after advancing yesterday amid a softer dollar.


• The yellow metal has been unfazed by the recent bout of Dollar strength, suggesting deteriorating risk across the market.


• Spot gold trades in a USD 3,373.78-3,393.55/oz parameter within yesterday's 3,351.33-3,393.75/oz range.

Base Metals: 3M LME Copper -0.6%

• Softer trade across base metals amid the deteriorating risk and broader Dollar strength.


• 3M LME copper resides in a USD 9,785.00-9,865.00/t range.


• Dalian iron ore ended the overnight session -0.6% with traders citing rising supply outweighing demand.

27 Aug 2025 - 10:20- ForexGeopolitical- Source: Newsquawk