EUROPEAN COMMODITIES UPDATE: Positive US-China optimism weigh on XAU and lifts Copper near ATHs

Crude Oil: WTI/ Brent -1.1%

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  Crude benchmarks attempted to move higher at the open over US-China trade optimism but reversed gains as the European session got underway as concerns of an oversupplied market and worries that the US sanction will not significantly reduce Russia’s importance weigh on oil prices.


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  WTI and Brent gapped higher and continued to a peak of USD 62.17/bbl and USD 65.89/bbl respectively before falling c. USD 1.50/bbl to a trough of USD 60.67/bbl and USD 64.30/bbl despite a lack of crude-specific newsflow.


• Earlier, the Iraqi oil minister said that there are talks to adjust Iraq’s quota within the available production capacity but remains committed to the current OPEC quota of 4.4mlm BPD.

Precious Metals: XAU -1.7%, XAG -1.6%

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  Spot XAU fell on the open of the APAC session, reversing the upside move made on Friday’s softer-than-expected CPI print, as positive rhetoric from the US-China meeting in Malaysia drove risk-on flows. Both sides reached a consensus about tariffs, export controls and fentanyl, while an agreement was reached to delay implementation of the new rare earths licensing for one year. This opens up the potential for a deal when US President Trump meets China President Xi on Thursday.


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  XAU dropped from USD 4108/oz to USD 4063/oz on the open and oscillated in a tight c. USD 45/oz band throughout the APAC session. As the European session got underway, the yellow metal continued lower to a trough of USD 4023/oz and currently trading near session lows at USD 4040/oz.

Base Metals: 3M LME Copper +0.7%

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  Base metals drove higher on the open due to the aforementioned US-China trade talks. 3M LME Copper gapped above USD 11k/t and continued higher to a peak of USD 11.09k/t, USD 10/t shy of record highs, before retracing from highs to USD 11k/t but still holding onto gains.


• Despite being near record highs and positive US-China talks, there are worries this rally may not be sustained as supply disruptions begin to fade and Chinese consumption remains weak.

27 Oct 2025 - 09:55- MetalsEU Research- Source: Newsquawk