EUROPEAN COMMODITIES UPDATE: XAU hits the USD 4k/oz mark, Crude continuing to rebound as China set to re-enter market

Crude Oil: WTI +1.0%, Brent +0.6%

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  Crude benchmarks are trading slightly higher, extending on the prior day's high, despite worries of oversupply in the market with OPEC+ hiked production at its last meeting (albeit by a smaller than expected magnitude) and amid forecasts in the US that point to a record domestic oil output.


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  WTI and Brent continued the late bid from yesterday’s session to form a peak at USD 62.45/bbl and USD 66.15/bbl, respectively, at the time of writing, before a dip towards USD 62.12/bbl and USD 65.88/bbl, respectively, as commentary from the Egypt talks remains positive.


• Talks between Israel and Hamas continue in Egypt. A statement from Hamas earlier in the session said that they are optimistic, and a list of hostages’ names has been exchanged between the two sides.


• EIA is continuing normal publication schedules and data collection, and therefore, the weekly US energy inventory data will be released later today; weekly data from the API reportedly showed headline crude stocks posting a larger-than-expected build of +2.8mln bbls (exp. +1.9mln), Cushing drawing down by -1.2mln bbls, distillates and gasoline stocks posting a larger than expected draw of -1.8mln bbls (exp. -1.2mln) and -1.2mln bbls (exp. -0.9mln), respectively.

Precious Metals: XAU +1.4%, XAG 2.0%

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  Spot XAU has broken the USD 4k/oz mark, extending to a peak of USD 4039/oz and thus far remaining near ATHs.


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  XAG has also continued its run higher, just shy of USD 49/oz and eyeing the USD 50/oz psychological mark. This comes as investors choose the silver metal as a cheaper alternative to the yellow metal, and an increased demand for industrial applications.


• The surge in precious metals also comes as investors look to safe havens away from the dollar to protect against rising government debt burdens, geopolitical tensions and expectations of the dollar to continue lower.

Base Metals: 3M LME Copper -0.1%

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  Base metals remain rangebound as China re-enters the market tomorrow. 3M LME Copper dipped to a trough of USD 10.68k/t before reversing to a peak of USD 10.78k/t as copper consolidates after a record weekly gain.


• Amid copper consolidation, there continues to be a growing consensus that copper still has further to go, with forecasts being revised higher towards USD 11.5-12k/t by the first half of next year due to supply disruptions and a continuing weaker dollar.


• Glencore received funding by the Australian government to keep its copper smelter running in Mount Isa for another three years. This comes as global copper supply falls due to disruptions at large mines in Indonesia and Chile.

08 Oct 2025 - 10:20- MetalsEU Research- Source: Newswires