EUROPEAN COMMODITIES UPDATE: XAU breaks USD 4200/oz, crude benchmarks muted amid heightened trade tensions

Crude Oil: WTI/ Brent +0.2%

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  Crude benchmarks trade rangebound, oscillating in a c. USD 0.50/bbl band, after benchmarks fell to a 5-month low during Tuesday’s session amid an oversupplied market and heightened trade tensions. WTI and Brent remain below USD 59/bbl and USD 62.50/bbl, respectively, as markets wait for delayed weekly Private Inventory data following the US holiday on Monday.


• Trade tensions between China and the US continue to rise, as US President Trump said he might stop trade in cooking oil with China as retaliation for China not buying US soybeans.


• Elsewhere, Russian Deputy PM Novak said the current oil price reflects the existing balance on the energy market, whilst Russia has the potential to raise oil production. He added that there are no plans for Russia to submit new oil output without a compensation plan to OPEC, and demand for global energy is growing, especially for electric power, whilst demand for oil is also rising and is on par with 2024 – no notable move seen on the comments.

Precious Metals: XAU +1.8%, XAG +3.0%

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  Spot XAU has continued its historic rally, breaking beyond USD 4,200/oz, as Fed Chair Powell signals another cut this month. The yellow metal is currently trading at USD 4,218/oz, continuing with a broad consensus that XAU could reach USD 5,000/oz in 2026


• In his speech on Tuesday, Fed Chair Powell pointed to the low pace of hiring and further declines in job openings, which could show up in unemployment.

Base Metals: 3M LME Copper +0.8%

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  Base metals remain choppy but paring back most of Tuesday’s losses as the dollar weakens on dovish Powell comments. 3M LME Copper peaked at USD 10.75k/t and is currently trading off its best levels despite a lack of newsflow.


• Traders at LME week remain bullish for the brown metal, with some quoting a new ATH at USD 12k/t is within reach, given supply disruptions and flow of money into metals. However, there are some who think the global copper market remains in surplus, giving a more cautious tone.

15 Oct 2025 - 10:00- ForexEU Research- Source: Newsquawk