Daily Commodity Report for 08 May 2025: Indian & US Markets

GLOBAL MARKET ROUND UP

Several factors, including the hawkish stance of Fed Chair Powell, the recovery in the US dollar, and the easing of trade tensions, contributed to the decline in gold during the previous session. Federal Reserve Chair Jerome Powell said the US central bank isn’t in a rush to adjust interest rates despite President Donald Trump’s trade war. Powell added it’s still appropriate to keep rates on hold. “We’re in the right place to wait and see how things evolve,” he said during a press conference Wednesday.

Notably, the FOMC added to the policy statement that it judges “the risks of higher unemployment and higher inflation have risen,” indicating a stagflationary outlook.

Crude oil fell after Federal Reserve Chair Jerome Powell indicated no rush to adjust interest rates and amid ongoing US-China trade tensions. The decline in oil prices is also attributed to concerns over economic growth and energy demand. Meanwhile, US crude inventories fell by 2.03 million barrels last week to the lowest level since late March, EIA data showed. Jet fuel demand jumped to the highest since December 2019.

Natural gas prices surged nearly 5.0% on Wednesday due to a decline in output and updated forecasts indicating that demand is expected to rise more than previously anticipated this week. This increase in demand is particularly linked to the return of Freeport LNG’s export plant in Texas, which resumed operations following an outage the day before.

Copper prices fell on Wednesday due to various factors, including macroeconomic conditions, uncertainty surrounding trade agreements, and recovery in the US dollar