Gold, silver, palladium, and platinum prices soared while international crude oil prices tumbled overnight.
As of the latest update, London gold prices rose 1.67% to $4,195.46 per ounce, silver surged 3.99% to $53.23 per ounce, palladium climbed 2.22% to $1,505.85 per ounce, and platinum gained 2.29% to $1,634.93 per ounce.
On the geopolitical front, Canada announced new sanctions targeting Russia, including 13 individuals and 11 entities involved in drone development, cyber infrastructure, LNG enterprises, and a shadow fleet of 100 vessels. Meanwhile, Ukraine declared it would suspend peace talks with Russia until at least year-end. Separately, EU finance ministers reached consensus on a €140 billion loan plan for Ukraine using frozen Russian assets, though technical hurdles remain.
After a brief rebound, international oil prices plunged sharply. WTI December crude futures dropped 4.19% to $58.48/barrel, while Brent January futures fell 3.74% to $62.72/barrel. Market concerns over oversupply resurfaced despite recent gains driven by geopolitical tensions and strong refined product markets.
Analysts noted that fresh U.S. sanctions on Russian oil, India's suspension of Russian crude purchases, and Ukrainian attacks on Russian energy infrastructure initially fueled supply concerns. However, fundamental pressures persist. Global refinery maintenance cycles and declining seasonal demand are expected to weigh on prices, with U.S. crude inventories already showing a 1.2 million-barrel build last week. OPEC+'s planned December production increases add further downward pressure.
While near-term support exists from refined product markets, analysts anticipate significant inventory buildup through Q1 2026, potentially driving prices lower. Russia's seaborne crude exports have declined for three consecutive weeks to two-month lows amid expanding Ukrainian strikes on pipelines and terminals, suggesting prolonged supply disruptions.
Market participants are advised to monitor floating storage levels and Asia's Russian crude purchases closely, as these factors could mitigate the broader bearish outlook.