EUROPEAN COMMODITIES UPDATE: Softer intraday Dollar keeps commodities afloat for now

Crude Oil: WTI Jun +0.9%, Brent Jul +0.7%

• Crude futures edge higher in early European morning amid the ongoing trade optimism heading into this weekend's US-Sino trade talks in Switzerland.


• The US and China will hold high-level trade talks in Geneva on Saturday, marking the first formal negotiations since the April escalation in tariff tensions. Markets view the meeting as a potential turning point, although desks caution that any outcome is likely to be limited to initial engagement rather than comprehensive agreement.


• US President Trump has stated that “China wants to make a deal” and hinted tariffs could fall from the current 145% peak - NY Post sources suggested to 50–54% - with sources noting discussions are underway to implement this cut during the negotiation window. Desks believe this would provide near-term relief for risk assets but fall short of resolving structural trade frictions.


• Elsewhere, US President Trump said they are trying to work on Iran without getting into bombing, while it was separately reported that US President Trump had a private meeting with Israeli PM Netanyahu's advisor ahead of his Middle East trip, according to Axios.


• WTI Jun trades near session highs between USD 59.89-60.74/bbl while Brent Jul resides in a USD 62.84-63.65/bbl parameter.

Precious Metals: Gold +0.6%, Silver +0.3%, Palladium +0.3%

• Modest gains across the precious metals complex, underpinned by the current intraday weakness of the Dollar.


• Spot gold initially dipped beneath the prior day's lows before recovering to above the USD 3,300/oz level.


• Price action has been somewhat stable for the yellow metal during the European morning amid a lack of fresh catalysts and in the run-up to this weekend's US-China trade talks.


• Spot gold resides in a USD 3,274.81-3,332.35/oz range at the time of writing.

Base Metals: 3M LME Copper -0.1%

• Copper futures, in APAC hours, extended on mid-week pullback with selling exacerbated as Chinese markets got underway and with the PBoC's open market operations resulting in the largest weekly net drain in two months, while participants also reflected on the latest Chinese trade data.


• Copper futures saw a brief spike higher in European trade, albeit in the absence of pertinent newsflow. The move swiftly pared back shortly after.


• Elsewhere, Chile's Codelco copper production rose 14.8% Y/Y in March to 123,200 metric tons, while Escondida copper production rose 18.9% to 120,600 metric tons and Collahuasi copper production fell 29.3% Y/Y to 35,200 metric tons.


• 3M LME copper resides in a USD 9,342.00-9,465.55/t range, with traders eyeing the fallout of the US-Sino trade talks.

09 May 2025 - 09:55- ForexGeopolitical- Source: Newsquawk