[MARKET ANALYSIS] Commodity prices are on the backfoot amid the mostly subdued risk appetite, firmer dollar and LME technical issues

Commodity prices are easing, influenced by a firmer dollar and reduced risk appetite.

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[MARKET ANALYSIS] Commodity prices are on the backfoot amid the mostly subdued risk appetite, firmer dollar and LME technical issues

Former Fed Governor Warsh had met with US President Trump at the White House on Thursday, according to Reuters citing a source familiar with the matter

LME trading has now opened following a delay due to technical issues

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WTI/Brent: WTI Mar'26 -1.0% / Brent Apr'26 -1.0%

  • Oil prices gave back some of the prior day's gains, which were spurred by ongoing geopolitical risks regarding potential US military action against Iran, although the latest from US President Trump is that he plans to have talks with Tehran and noted there are big, powerful ships going to Iran, which he hopes that they don't have to use.

Gold: -1.6%

  • Retreated back beneath the USD 5,400/oz with the precious metal pressured by a firmer buck ahead of President Trump's announcement of his Fed Chair pick on Friday morning and with a US journalist posting that Trump was said to be leaning towards Kevin Warsh.

Copper: -1.7%

  • Futures were pressured with demand not helped by the mostly subdued risk appetite and the delay in LME trading due to technical issues, which has since been resolved.
Context

The decline is broad, with oil, gold, and copper all trading lower, reflecting the impact of geopolitical tensions and technical issues in LME trading. This suggests a cautious market environment where higher U.S. dollar levels may constrain further upside in commodities, particularly as markets await potential shifts in monetary policy from the upcoming Fed Chair announcement.

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