Thyssenkrupp's Warship Arm to List Next Week as Group Eyes European Defense Cash — Update

Palladium futures slipped near $1,460 per ounce, reversing earlier gains of over two-year highs, as renewed concerns over US–China trade tensions weighed on sentiment.

The decline came with both sides imposing reciprocal port fees and Beijing tightening export restrictions on rare earth materials, stoking concerns over potential supply chain disruptions.

Lingering uncertainty over the progress of trade negotiations and the impending expiry of the 90-day tariff truce further reinforced a cautious tone in the market.

While gold and silver drew support from safe-haven demand, palladium futures weakened as investors reassessed global growth trajectories and industrial demand fundamentals amid heightened geopolitical uncertainty between the United States and China.

Silver fell nearly 3% below $51 per ounce on Tuesday, retreating from record highs as renewed fears of a prolonged US-China trade conflict triggered broad selling and profit-taking across markets.

China imposed restrictions on five US units of Hanwha Ocean in retaliation for Washington’s probes into Chinese maritime, logistics, and shipbuilding industries.

Further adding to tensions, both nations began imposing additional port fees on ocean shipping firms. Still, silver remains elevated after a sharp rally driven by a historic short squeeze and tightening liquidity in London that forced traders to chase physical supply worldwide.

Lease rates in London surged more than 30% on Friday, pushing rollover costs for short positions to unsustainable levels.

Meanwhile, strong demand from India in recent weeks has further tightened supply, following earlier shipments of silver to New York amid concerns the metal could be targeted by US tariffs.

A major impetus for the gold rally has come from expectations of further U.S. rate cuts, increasing the precious metal's attractiveness relative to fixed income, says Vincenzo Vedda, global chief investment officer at DWS. Gold prices topped $4,000 an ounce for the first time recently, rising more than 50% year to date. Silver has also rallied, outperforming gold's gains this year, he notes. However, if things turn out differently, such as inflation not easing as expected, gold prices might come under pressure, he says in a note. Spot gold is trading around $4,100/oz, according to LSEG. (monica.gupta@wsj.com)

Copper futures slipped back below $5 per pound on Tuesday, giving up the prior session’s gains as renewed fears of a prolonged US-China trade conflict rattled global markets.

China imposed restrictions on five US units of Hanwha Ocean in retaliation for Washington’s investigations into Chinese maritime, logistics, and shipbuilding sectors.

Further stoking tensions, both the US and China began imposing additional port fees on ocean shipping firms, though Beijing granted exemptions for domestically built vessels.

Still, US Treasury Secretary Bessent said Monday that President Trump remains on track to meet Chinese President Xi in South Korea later this month.

Meanwhile, supply concerns persisted as mining disruptions in Chile and Indonesia continued to limit global output, with Chile’s Codelco reporting its lowest monthly production in more than two decades in August and Indonesia’s Grasberg mine still facing restrictions following last month’s fatal accident.

By Adam Whittaker

BP expects third-quarter upstream production to rise from the previous quarter and anticipates a boost of up to $400 million from higher refining margins in its products segment.

The British energy major said Tuesday that upstream production for the quarter will be higher than the previous three months, driven by increased gas production at BPX energy and from its gas and low-carbon energy segment.

BP had previously guided for upstream production in the third quarter to be slightly lower than in the second quarter.

Meanwhile, higher refining margins will deliver a $300 million to $400 million boost in its products division, BP said.

Write to Adam Whittaker at adam.whittaker@wsj.com

Palladium decreased 5.24% to 1466 USD/t.oz