Oil prices exhibited volatility as traders monitored expectations for a modest OPEC production increase in April and pessimistic US government data, while also assessing mounting pressures on Iran's nuclear program. Copper prices climbed to a three-week peak. Gold moved higher, while silver experienced significant gains.

Crude Oil: Oil Prices Fluctuate as Traders Await US-Iran Nuclear Talks Oil prices were volatile. Traders are focusing on anticipations of a slight output hike from OPEC in April and discouraging US government figures, while simultaneously evaluating the increasing strain on Iran's nuclear initiatives. West Texas Intermediate crude prices swung within a range of approximately $1.50, ultimately settling 0.3% lower, remaining above $65 per barrel. Market participants have been scrutinizing various indicators to determine if Iran's concessions on nuclear matters will be sufficient to facilitate a thaw in relations with the United States. The WTI crude contract for April delivery declined 0.3%, settling at $65.42 per barrel. The Brent crude contract for April delivery edged up 0.1%, settling at $70.85 per barrel. The US government announced new sanctions on Wednesday targeting entities supporting Iran's petroleum and weapons sales. Recent statements have intensified speculation about potential new military actions against Iran, while Iran continues to assert the peaceful nature of its nuclear program. Concurrently, data released by the US Energy Information Administration on Wednesday showed US crude inventories surged by nearly 16 million barrels last week, the largest increase since February 2023, despite slight declines in some refined product stocks. Traders remained cautious about this data, citing unusual weather conditions and significant potential for revisions. Some OPEC+ representatives indicated they expect the group to agree to restore a small amount of production when it meets this weekend to review output policy for April, which further counteracted upward momentum stemming from the Iran situation.

Base Metals: Copper Prices Reach Three-Week High Copper prices advanced to a three-week high, driven by market expectations that the US might reduce import tariffs. However, a substantial increase in inventories suggested that high prices have dampened spot purchasing. On Wednesday, copper prices rose by as much as 1.4% to $13,350 per tonne, closing 1.2% higher and extending the previous session's 2.3% gain. After hitting a record high at the end of January, copper prices retreated and are currently consolidating near historic levels. Recent shifts in US trade policy and declining mine output have provided underlying support for prices. Analysts from Citigroup, including Tom Mulqueen, noted in a report that they anticipate further seasonal draws in Chinese copper inventories in the coming months. The analysts also suggested that investors are likely to increase buying on dips. At the close, LME copper was up 1.18% at $13,322.5 per tonne. LME aluminium increased 2.49% to $3,170.5 per tonne. LME nickel rose 0.98% to $18,085.0 per tonne. LME zinc advanced 0.27% to $3,388.5 per tonne.

Precious Metals: Gold Prices Rise Gold prices increased, and silver posted substantial gains. Traders are weighing uncertainties surrounding US import tariff prospects and ongoing tensions in the Middle East. On Wednesday, spot gold climbed as much as 1.4%, recouping some of the losses from the previous trading session. Recent ambiguity in US trade policy has supported gold prices. Simultaneously, heightened military deployments ahead of a new round of nuclear talks between the US and Iran this week have amplified market unease. Silver broke above $90 per ounce. "The gold price appears to be building momentum for an upward breakout," stated the Asia Macro Strategy head at a major private bank. She pointed out that factors such as tariff uncertainty and risks associated with Iran "could be sufficient to catalyze a more lasting shift." As of 5:40 PM New York time, spot silver was up 2.38% at $89.2296 per ounce. Spot gold was up 0.41% at $5,164.78 per ounce.