EUROPEAN COMMODITIES UPDATE: Metals sell off as “debasement trade” loses momentum

Crude Oil: WTI/ Brent +0.3%

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  Crude benchmarks initially held steady before edging higher amid a lack of crude-specific newsflow. A contango oil futures curve and growing builds showing up in data are weighing on benchmarks as Brent edges closer to USD 60/bbl.


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  WTI and Brent extended above USD 57/bbl and USD 61/bbl respectively before falling c. USD 0.50/bbl lower and then rising to fresh highs again.


• Reports by CNN earlier in the session said that a quick meeting between US President Trump and Russian President Putin may have stalled, as it was reported that a meeting between US Secretary of State Rubio and Russian Foreign Minister Lavrov had been put on hold. However, comments from Russia’s Foreign Ministry state that a meeting was never agreed upon between Rubio and Lavrov.


• In the Middle East, US President Trump states that a lot of steps are being taken to maintain the ceasefire, but warns Hamas of eradication if needed.

Precious Metals: XAU -2.0%, XAG -5.0%

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  Precious metals have been falling as the European session got underway, with spot XAU easing from USD 4,375/oz to a trough of USD 4,244/oz after the yellow metal formed a new ATH late in Monday’s session. XAG has slipped back below USD 50/oz as the precious metal space comes under pressure, but is currently off worst levels.


• With US Treasuries and the dollar rising, this brings in worries that the so-called “debasement trade”, which has been a key driver for precious metals in recent months, is coming to an end. This can result in profit-taking moves in XAU and XAG, with the latter expected to fall the most since it has been the outperformer between the two metals.

Base Metals: 3M LME Copper -0.6%

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  Base metals are slowly falling lower despite a lack of newsflow as markets await the meeting between US Treasury Secretary Bessent and Chinese Vice Premier He Lifeng. 3M LME Copper peaked at USD 10.73k/t before falling through Monday’s range and forming a low at USD 10.63k/t.


• BHP reported copper output at 493.6k tons, which is up 4% Y/Y, and MMG reported that its Las Bambas mine is to achieve 400k tons of copper production in 2025, which has risen from prior guidance of 360k-400k tons.

21 Oct 2025 - 10:00- MetalsGeopolitical- Source: Newsquawk