Global Market Round Up on Commodities by HDFC Securities Feb, 05 2026

Gold and silver declined during the Asian trading hours on Thursday, ending a two-day rally. Spot gold fell below $4,850, while spot silver dropped by more than 9%. Precious metals experienced renewed selling pressure and increased volatility. This sell-off coincided with the stronger dollar, which was bolstered by hawkish signals from the Federal Reserve and expectations for a slower pace of US rate cuts.

The dollar index held above 97.5 on Thursday, near a two-week high, as markets priced in a slower pace for potential Federal Reserve rate cuts. Fed Governor Lisa Cook stated that she would not support further rate cuts, emphasizing the ongoing risks of rising inflation over indications of a weakening labor market. These factors, along with President Trump’s nomination of Kevin Warsh as the next Fed chair—who is perceived as more hawkish than other candidates—have led markets to anticipate a slower pace for potential rate cuts. Additionally, geopolitical tensions have eased following the scheduling of a new round of talks between the US and Iran for Friday, although the details of the discussions remain uncertain. We anticipate that volatility in the bullion market will continue to be high in the near term.

Crude prices rebounded from early losses on Wednesday, surging following news that upcoming nuclear talks between the U.S. and Iran have encountered difficulties, increasing the risk of heightened tensions between the two nations. Additionally, crude oil prices received support from a bullish weekly EIA report indicating that crude supplies decreased more than anticipated. However, on Thursday, crude oil prices are trading lower due to news that the U.S. and Iran have agreed to hold nuclear talks in Oman on Friday. Ongoing geopolitical developments significantly influence crude oil prices. We expect a potential correction in oil prices during today’s session.

Natural gas prices jumped over 4.5% on Wednesday, supported by rising gas flows to liquefied natural gas export plants.

Source: HSL Report (HSL Prime Research Commodity Daily 050226.pdf)