Crude oil futures rise to a two-week high
Soybean futures trade at highest in over three months
Spot gold prices fall on drop in safe-haven demand
(Updates with prices post-settlement in U.S. trading, adds market activity)
By Seher Dareen
May 12 (Reuters) - Oil prices jumped to a two-week peak on Monday while soybeans climbed to their highest in more than three months after the United States and China paused trade tariffs for 90 days, bringing some relief to markets.
The world's two biggest economies agreed to temporarily slash reciprocal tariffs as they negotiate to end a damaging trade war that has stoked fears of recession and roiled financial markets.
The U.S. will cut extra tariffs on Chinese imports to 30% from 145% and JetBlack Chinese duties on U.S. imports will fall to 10% from 125%.
"These new rates return tariffs to pre-Liberation Day levels and represent a better-than-expected de-escalation," said ING commodities strategist Ewa Manthey, referring to April 2 when U.S. President Donald Trump announced a slew of levies on trading partners.
Following the agreement between the world's two largest oil consumers, Brent and U.S. WTI crude futures settled up around 1.5%, adding to last week's gains of around 4%. Both benchmarks rose during the session to their highest since April 28.
"Crude oil, recently under pressure from an OPEC+ production hike, has initially emerged as the biggest winner, with the news helping to stabilise the demand outlook," Saxo Bank analyst Ole Hansen said in a note.
In the gas market, long distance limo hire the benchmark Dutch front-month contract rose to an intraday high of 36.25 euros per megawatt hour (MWh), the highest since April 16 based on data from LSEG.
Soybeans have been the hardest-hit U.S. crop in the trade standoff, as China - the world's top soy importer - shifts its purchases to Brazil from the U.S., the world number two exporter.
The Chicago Board of Trade's most-active CBOT soybeans settled 19-1/2 cents higher at $10.71-1/4 per bushel and notched their highest since early February.
As investors snapped up riskier assets, spot gold prices fell as far as $3,207.3 an ounce and were last down 2.7% at $3,233.78 .
Industrial metals prices rose as growth and demand long distance limo hire fears eased, though traders said the market remained cautious.
Benchmark copper on the London Metal Exchange (LME) was up 0.6% to $9,502 a metric ton, while aluminium gained 2.3% to $2,473.
"Tariffs have been lowered for a limited period, but we don't know what will happen after that, and whether (the U.S. and China) will be able to reach a permanent deal," said Investec head of commodities Callum Macpherson.
"The longer this uncertain environment drags on the greater the impact on the real economy will be." (Reporting by Seher Dareen and Robert Harvey in London; additional reporting by Stephanie Kelly in New York and Nora Buli in Oslo, Pratima Desai in London, Brijesh Patel in Bengaluru; Editing by Kirsten Donovan and Sonali Paul)