• Spot gold plunged 5.3% yesterday, continuing its slide in early Asian trading.
• The rally since August (+$1,000/oz) made gold extremely overbought, triggering massive profit-taking.
• President Trump’s optimistic comments about a “good trade deal” with China further pressured gold.
• Silver -7%, Platinum -5.2%, and Palladium -6.1% — a broad-based sell-off across precious metals.
• Gold’s recent strength was largely ETF-driven, with record inflows in September — the biggest since March 2022.

Energy: Oil Prices Edge Higher Despite Oversupply Risks

• Brent crude settled 0.51% higher, supported by U.S. plans to refill the Strategic Petroleum Reserve (SPR).
• The U.S. will purchase 1 million barrels for delivery between December and January.
• Current SPR stands at 408 million barrels, still far below the 2020 level of 656 million.
• API data showed U.S. crude inventories fell by 3 million barrels, offering some short-term support.
• However, the overall market surplus continues to cap any meaningful upside.

Agriculture: Sugar Declines on Strong Supply Outlook

• Raw sugar dropped over 3%, pressured by expectations of a large 2025/26 surplus.
• Brazil’s sugar production rose 10.8% in late September as mills favored sugar over ethanol.
• Russia’s wheat output is expected to reach 88 million tons, up from 87.5mt previously, with exports at 44.1mt.
• Corn output forecast increased to 15.3mt, signaling a strong harvest season.

What’s Next?
The broad correction in commodities shows how quickly sentiment can shift after an extended rally. Gold’s sell-off was inevitable given the parabolic rise, while oil’s limited upside amid high inventories signals caution ahead.