EUROPEAN COMMODITIES UPDATE: Spot gold tests USD 3,500/oz before waning; industrial commodities mostly firmer

Crude Oil: WTI Jun +1.6%/Brent Jun +1.4%

• Crude futures extend on the rebound from the prior day's trough despite the European rebound in the Dollar and overall quiet news flow thus far.


• The recovery overnight was helped by reports that Israel's air force conducted drills simulating missile and rocket attacks on its bases which were the same ones targeted in previous Iranian strikes in April and October last year.


• Furthermore, the short-lived Russia-Ukraine Easter "ceasefire" expired yesterday, with several violations reported on both fronts. This also comes as the US signalled fatigue with regards to Russia-Ukraine peace talks during the Easter break.


• Desks pin the recent losses in the complex to US tariff uncertainty, risk aversion from Trump pressuring the Fed Chair, and telegraphed progress regarding US-Iran nuclear talks.


• WTI resides in a USD 62.72-63.43/bbl range with its Brent counterpart in a USD 66.54-67.25/bbl parameter.


• Front-month Dutch TTF is relatively flat on either side of EUR 35.50/MWh, while reports yesterday suggested that the EU is reportedly exploring tweaking its methane rules for US gas exports in a bid to help trade talks, according to Reuters sources.

Precious Metals: Gold +1.1%, Silver -0.7%, Palladium +2.0%

• Spot gold extended on its rally and printed a fresh record high at USD 3,500/oz at the time of writing, with gains in the yellow metal facilitated by the recent fall in the Dollar coupled with ongoing uncertainty on the US tariff policy and geopolitics. Add to that, the issue of US central bank independence after US President Trump upped the pressure on Fed Chair Powell to ease monetary policy.


• Spot silver and palladium are mixed, with the former on a softer footing following yesterday's gains as it fails to piggyback on the momentum seen in gold.


• The latter rebound following three back-to-back sessions in the red.


• Spot gold currently resides in a USD 3,3412.34-3,500.20/oz range at the time of writing vs yesterday's USD 3,331.40-3,430.61/oz parameter.

Base Metals: 3M LME Copper +0.9%

• Mostly firmer trade across base metals amid the recent fall in the Dollar and resilience in the red metal's largest buyer (China).


• Upside is capped by uncertainty, with newsflow also on the quieter side today.


• 3M LME copper resides in a USD 9,254.03-9,333.05/t range at the time of writing.

22 Apr 2025 - 10:00- ForexEU Research- Source: Newsquawk