Commodities Daily - June 25, 2019

> Brent shrugs off new Iran sanctions, slides on jittery stock markets and Russian wavering on the OPEC+ deal extension. Today, investors will tune in to speeches by Fed Chairman Jerome Powell and several other representatives from the Fed. They are likely to maintain a dovish stance, thus providing support to oil prices. We note that WTI continues to strengthen relative to Brent on expectations of a seasonal draw in crude stocks at Cushing amid elevated US crude exports. The API inventory data due overnight should provide some insight here. Otherwise, the data calendar is heavily US-focused, with FHFA housing prices, new home sales, consumer confidence and the Richmond Fed index. We think that Brent will continue trading around $65/bbl for the rest of the day today.> Gold rally continues after US sanctions against Iran; Fed speakers in focus today. Yesterday was a light day for the gold market in terms of data. Regional Fed economic activity indexes failed to affect prices. However, new US sanctions against Iran led to safe-haven demand, which boosted gold to as high as $1,437/oz. Four regional Fed heads and Chairman Powell are scheduled to speak today. Their comments, as well as US economic data, will be key for gold.> Copper approaching $6,000/tonne mark. Rising interest in the metal stems from the weakening dollar, expectations of a meeting between Trump with Xi in Osaka and the ongoing strike at Chile's Chuquicamata mine.