EUROPEAN COMMODITIES UPDATE: XAU falls to USD 3.9k/oz, crude falls a OPEC+ hint at another oil production hike

Crude Oil: WTI -1.8%, Brent -1.7%

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  Crude benchmarks have fallen as the European session got underway, as reports state that OPEC+ is leaning towards another hike in oil production in an already oversupplied market. WTI and Brent oscillated in a tight c. USD 0.40/bbl band over the APAC session but extended Monday’s low despite any real catalyst at the time. Currently, benchmarks remain near session lows, with WTI and Brent trading at 60.19/bbl and 63.79/bbl, respectively.


• Amid US sanctions on Russian oil producers, BRCL, an Indian oil company, will reportedly place an order for Russian oil if it is supplied by non-sanctioned entities. However, reports citing Indian government sources refuted this statement.


• In relation to the recent Russian oil sanctions, the Trump administration’s plan is to make Russia’s trade costlier and riskier but without spiking prices. This has placed a “ceiling” on how high crude prices will go, as WTI peaked shy of USD 63/bbl following the news of US sanctions on Russian oil.


• On geopolitics, it was reported that Israeli PM Netanyahu is to hold an emergency meeting about Hamas’ “violations” of the Gaza ceasefire. This adds to reports that Israeli military vehicles have been firing on the eastern areas of Gaza City.

Precious Metals: XAU -1.9%, XAG -1.8%

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  Spot XAU remains under pressure as investors continue to take profit from the 32% drive over the past 2 months. After falling to a trough of USD 3971/oz in Monday’s session, XAU oscillated in a USD 3963-4019/oz range throughout the majority of the APAC session. As the European session got underway, the yellow metal extended lower to a trough of USD 3886/oz but is currently off lows slightly at USD 3905/oz.


• Due to many factors, including the US government shutdown, expectations of Fed rate cuts, and “debasement trade” momentum, investors have been purchasing XAU ETFs with holdings reaching new record levels. But as the debasement trade wanes, investors have been gradually profit-taking and can see a wider unwind of ETF holdings over recent days.

Base Metals: 3M LME Copper -0.8%

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  Base metals have gradually fallen throughout the APAC session and into the European session as 3M LME Copper nears new record levels. 3M LME Copper peaked at USD 11.05k/t early in the APAC session before gradually falling to a trough of USD 10.86k/t. Prices have rebounded, currently trading at USD 10.92k/t as the Trump-Xi meeting looms.


• Anglo American warned copper production for its most important mine will likely be lower than expected next year, weighing on an already tight market.

28 Oct 2025 - 09:55- ForexGeopolitical- Source: Newsquawk