EUROPEAN COMMODITIES UPDATE: Precious metals ignore the dollar and continue to rise with silver's momentum helping

Crude Oil: WTI Oct U/C / Brent Nov U/C

• Continued to decline after recently snapping a 3-day win streak amid a lack of energy newsflow. But has since moved higher, back towards the unchanged mark, but without a clear driver.


• Some of the downbeat sentiment may be on EU officials suggesting it is unlikely the G7 will impose 100% tariffs on China and India, as India is a vital partner in trade and security matters, according to FT. This comes as the US is to urge G7 to impose high tariffs on China and India over Russian oil purchases, while finance ministers from G7 leading economies will discuss a US proposal for a round of new measures on Friday, according to FT.


• Analysts at ING warn, however, that "escalating geopolitical tensions, following Israel's attack on Hamas's leadership in Qatar and prospects of tighter Western sanctions on Russian energy exports, might help put a floor under oil prices."


• Elsewhere, Canada is in talks with energy firms and Alberta that could result in the scrapping of the federal oil and gas emissions cap. In exchange, Canada would seek renewed progress towards cutting the energy industry's carbon footprint.


• WTI currently resides in a 61.69-62.35/bbl range while Brent sits in a USD 65.71-66.45/bbl range.

Precious Metals: Gold +0.3%, Silver +1.7%, Palladium +0.9%

• Precious metals are steadily gaining despite this morning's dollar strength and in tandem with a rally in silver, which climbed above the USD 42/oz level.


• Newsflow remains light for the complex as participants look ahead to commentary from the US President on Fox. 


• Spot gold currently resides in a USD 3,622.75-3,649.35/oz range and within yesterday's USD 3,620.13-3,657.61/oz range. All-time high still sits at USD 3,674.69/oz printed on 9th September.

Base Metals: 3M LME Copper +0.3%

• Trades firmly despite the weaker sentiment and stronger dollar, and with little in terms of newsflow to explain price action, although supply-side headlines yesterday suggested Peruvian copper output fell 2% in July.


• The upward momentum comes as 3M LME copper broke above USD 10k/t more convincingly in the aftermath of the US CPI and Jobless Claims data.


• 3M LME copper resides in a USD 10,054.35-10,127.20/t range at the time of writing.


• Overnight, iron ore futures saw little action but still notched a third week of gains, with traders citing improved demand from China.

12 Sep 2025 - 10:00- MetalsGeopolitical- Source: Newsquawk