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Comex gold futures are surging towards $2,950 per ounce, driven by a weakening US dollar and falling Treasury yields. This surge comes as traders assess the US's push to end the war in Ukraine and the previous US president's trade policies. The prospect of negotiations to end the war in Ukraine has boosted the euro. Despite higher-than-expected US inflation data, gold prices continue to climb, supported by a weaker dollar and concerns over potential trade tensions stemming from new tariffs. Investors are seeking safe-haven assets amidst global economic uncertainty. The previous US administration had announced reciprocal tariffs, escalating trade tensions and further fueling demand for gold.

WTI crude oil futures declined for a second day, trading below $70.50 per barrel asInvestor sentiment was subdued following talks between US and Russian president’s regarding the war in Ukraine, raising hopes of a resolution that could ease supply concerns. Rising US inflation data reinforced expectations of a hawkish Federal Reserve, putting pressure on dollar-denominated commodities. Elsewhere, the International Energy Agency again cut its projections for a global oil surplus this year, citing stronger demand growth in Asia and sanctions on OPEC+ nations. OPEC's unchanged 2025 oil demand growth forecast of 1.45 mbpd provided limited support. US sanctions on Moscow’s oil sector have disrupted the flow of Russian crude, which helped to underpin gains in global oil benchmarks earlier this year.

LME Copper futures are trading positively near $9455 per ton, reaching 3-month highs due to persistent concerns about potential US tariffs on copper, following similar measures on steel and aluminum. This could further disrupt the global supply chain by increasing the premium US buyers pay over LME prices. Adding to the bullish sentiment, traders have increased their net long positions in copper for the sixth consecutive week, reaching the highest level since early November. Strong manufacturing activity in the US and expectations of further economic stimulus in China, the world's top copper consumer, are also contributing factors.

European natural gas futures fell over 6.5% to below €52.5 per megawatt-hour, retreating from a two-year high of €59, amid growing optimism surrounding potential peace talks between Russia and Ukraine. Reports suggest the former US president initiated these negotiations, with both leaders expressing a willingness to engage. This development alleviated supply risk concerns, driving prices down. Hopes are rising that some lost Russian gas supply could return to Europe if the conflict ends. More immediately, negotiations regarding relaxed gas storage targets are also impacting prices. Several EU members are advocating for increased flexibility in refilling fuel stockpiles before next winter.

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