Global Market Round Up on Commodities by HDFC Securities Feb, 04 2026

Gold recouped part of its recent losses on Tuesday after a sharp unwinding of a record-setting rally that had pushed prices down to a four-week low. Silver also moved higher, supported by bargain hunting following two days of sharp sell-offs. Investors who had been waiting for a correction to initiate long positions are now viewing the current pullback as a buying opportunity.

Despite heightened volatility, gold continues to find support from strong macroeconomic factors. These include ongoing geopolitical tensions in the Middle East, steady central bank buying, global economic instability, inflationary pressures, rising U.S. debt levels, volatile equity markets, and an increasing investor preference for safe-haven and tangible assets. Collectively, we expect these factors to continue underpinning gold’s long-term bull run.

Crude oil prices continued to rise during the morning session in Asia on Wednesday amid escalating tensions between the U.S. and Iran. The situation intensified after the U.S. shot down an Iranian drone that was targeting the aircraft carrier USS Abraham Lincoln. Additionally, a U.S.-flagged vessel successfully evaded an attempt by armed Iranian gunboats to force it to stop. This confrontation has heightened concerns about the possibility of further conflict between the U.S. and Iran, which could disrupt oil supplies in the Middle East and lead to an increased risk premium for crude oil prices.

Natural gas prices rebounded on Monday, finishing the session higher due to short covering, which was influenced by mixed weather forecasts in the U.S. that affected prices on Tuesday. Above-normal temperatures are anticipated in the Midwest and the southern U.S. through February 17, while colder-than-normal temperatures are expected in the mid-Atlantic and Northeast until February 12.

Copper surged nearly 5%, marking its best one-day gain since November 2022, fueled by a broad recovery in metals following a historic decline. However, increasing inventories at major trading hubs in Shanghai, London, and New York may limit further gains

Source: HSL Report (HSL Prime Research Commodity Daily 040226.pdf)

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