EUROPEAN COMMODITIES UPDATE: XAU returns back above USD 4k/oz, LME Copper reaches new ATHs amid positive US-China trade optimism

Crude Oil: WTI -0.3%, Brent -0.2%

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  Crude benchmarks continue to oscillate at the lower end of Tuesday’s range despite brief worries that the Gaza ceasefire may not hold. WTI and Brent oscillate in a USD 59.72-60.52/bbl and USD 63.40-64.18/bbl band respectively amid a lack of crude-specific newsflow.


• Earlier in the session, the Israeli military announced the reinforcement of the Gaza ceasefire. This comes as the Israeli military carried out attacks in Gaza following comments from Israeli PM Netanyahu stating that Hamas has violated the ceasefire agreement.


• On the energy front, Japanese PM Takaichi reportedly told US President Trump that it will be hard to ban Russian LNG imports, according to Nikkei. Crude benchmarks gradually fell following this news but has pared back most of the move. This adds to the story that the US sanctions on Russian oil companies will not have much of an effect on Russia.


• Crude stocks are expected to see a slight draw of 0.211mln as the EIA reports its weekly crude stockpile. Private inventory data late in Tuesday’s session saw a bigger draw of -4mln barrels of crude from an expected draw of -0.2mln.

Precious Metals: XAU +1.7%, XAG +2.8%

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  Spot XAU has returned back above USD 4k/oz as the yellow metal rebounds from an 11% drop from ATHs at USD 4381/oz. After dipping to a low of USD 3908/oz at the start of APAC trade, XAU has steadily reversed Tuesday’s losses and is currently trading near session highs at USD 4018/oz.


• This comes as the FOMC is expected to cut its Fed funds rate to 3.75-4.0%. Investors will be watching how Fed Chair Powell describes how the Fed is looking at the economy during this government shutdown period. To add, many banks are also expecting an announcement on QT, with expectations of a termination of QT this month.

Base Metals: 3M LME Copper +0.6%

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  Base metals continue on Tuesday’s afternoon bid higher as US President Trump adds optimism over the upcoming meeting with Chinese President XI, stating that he expects to lower fentanyl-linked tariffs on China and is to talk about NVIDIA’s Blackwell chip with Xi.


• After briefly dipping below USD 11k/t during APAC trade, 3M LME Copper drove to new ATHs at USD 11.15k/t as the European session got underway. Supply disruptions and increased need for copper as the need for AI infrastructure continues to grow have driven the red metal to record highs.


• To add, Glencore says the company is on track to hit its 2025 production goals amid global disruptions at many of the world’s largest mines.

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