EUROPEAN COMMODITIES UPDATE: Crude futures choppy and gold holds strong

Crude Oil: WTI May +0.1%. / Brent May +0.1%.

• Choppy trade across the crude complex, with initial downside seen across the complex in tandem with risk aversion at the time amid tariff and growth fears.


• The risk tone at the time was potentially further hampered by reports of a 7.7 magnitude hitting Myanmar, and impacting Thailand, Vietnam, and parts of China.


• Thereafter, overall sentiment found slightly better footing as newsflow remains light in the run-up to US PCE.


• In geopolitics, the Russian Defence Ministry says Ukraine continued attacks on Russian energy infrastructure, according to Ria; attacked the Sudzha gas metering station on Friday and almost destroyed it, with Ukraine thereafter blaming Russia. Meanwhile, there were reports of Israeli warplanes flying over Lebanon's capital.


• Futures at the time of writing have moved marginally into the green - WTI May at the top of a USD 69.53-70.05/bbl band, Brent May in-fitting in USD 73.63-74.15/bbl parameters.

Precious Metals: Gold +0.6%, Silver -0.1%, Palladium +0.8%

• Mostly firmer trade across precious metals despite the firmer Dollar but against the backdrop of ongoing haven flows, particularly for spot gold, which benefited from a downbeat APAC risk tone.


• Notable newsflow this morning, aside from the aforementioned large earthquake, has been relatively quiet as participants brace for the US PCE - the Fed's preferred gauge of inflation.


• Spot gold is currently off highs in a USD 3,054.42-3,086.21/oz intraday range.

Base Metals: 3M LME Copper -0.6%

• Mostly lower trade across base metals amid the cautious risk tone and firmer Dollar heading into US PCE, with desks continuing to pin the downside on growth woes emanating from the US tariff policy.


• 3M LME copper resides in a USD 9,741.70-9,855.15/t range at the time of writing.


• Dalian iron ore prices also dipped overnight but still notched a weekly gain as hot metal output continued to increase in March - used as a gauge for iron ore demand.

28 Mar 2025 - 10:00- MetalsGeopolitical- Source: Newsquawk