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Metals surge on US rate cut hope; Oil and gas retreat on fading geopolitical tension

COMEX gold resumed its surge, reaching another record high of $2,563.8 per troy ounce, as traders await comments from Federal Reserve Chair Jerome Powell later this week. Powell is scheduled to talk Friday at the annual Jackson Hole symposium in Wyoming, where his remarks will be extensively analyzed for clues about the central bank's thinking on widely anticipated interest rate cuts.

WTI Crude Oil fell the most in two weeks to current trade near $73.70 per barrel, as the US reported Israel accepted a cease-fire proposal in Gaza, potentially reducing supply worries despite growing concerns about global demand. US Secretary of State Antony Blinken stated that the next step was for Hamas to accept to the plan aimed at de-escalating the 10-month conflict. Furthermore, China's deteriorating economic situation is weighing on the market. Recent data showed declining factory activity and oil consumption, while the world's top importer is also exploring a new rescue package for its battered real estate industry.

LME base metals continue its positive move on Tuesday, reflecting global market confidence over growing expectations that the Federal Reserve may shortly signal an interest rate drop. LME Copper is trading marginally higher near $9,257/tonne, boosted by signs of demand recovery in China, as seen by the rising Yangshan Copper premium, a drop in exports, and a significant 8.4% draw in SHFE stockpiles. Central bankers from around the world are gathering for a conference in Wyoming to discuss monetary policy and the global economy. The focus is Fed Chair Jerome Powell's address on Friday.

European natural gas prices decreased by roughly 1.8%, indicating that this month's rally is fading as traders gain confidence in the region's supply balance ahead of the heating season. Prices have remained around €40 per megawatt-hour since Ukraine's invasion into Russia near a vital gas transmission point. While border developments pose a risk to residual Russian flows as Europe is well-stocked for the colder months.

Traders will be focusing at FOMC members speeches and US numbers due this week, such as unemployment claims on Thursday, which could influence the Fed's intentions.

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