Global Market Round Up on Commodities by HDFC Securities Feb, 06 2026

Gold and silver tumbled on Thursday as precious metals came under renewed selling pressure and heightened volatility. The pullback was driven by a stronger U.S. dollar, hawkish remarks from Federal Reserve officials, and a moderation in safe-haven demand. Geopolitical tensions also eased after reports that the U.S. and Iran are scheduled to hold a new round of talks on Friday, reducing the likelihood of an immediate confrontation and further dampening safe-haven interest.

The decline extended into Friday’s session, with silver sliding more than 8% to below $65 per ounce, marking its lowest level in seven weeks amid widespread deleveraging and a deepening selloff across financial markets. Silver’s volatility outpaced that of other metals, as heavy speculative flows overshadowed underlying supply-demand fundamentals. For today’s session, we expect volatility in the bullion market to remain elevated in the near term, while selling pressure is likely to intensify at higher price levels.

The U.S. dollar hovered near a two-week high on Friday and was on track for its strongest weekly performance since November, as a sharp selloff in equities—triggered by concerns over AI-related spending—unsettled investors and boosted demand for the greenback.

Crude oil futures continued to decline on Friday, heading toward their first weekly drop in several weeks, as concerns about supply disruptions in the Middle East diminished. Investor attention has shifted to the U.S.-Iran nuclear talks taking place in Oman later today. A positive outcome from these discussions could further lower crude prices, while any unresolved issues or escalation of tensions might offer support to oil markets.

Copper prices continued to decline as investors focused on rising inventories and decreasing demand from Chinese buyers, despite some dip-buying activity earlier this week. The premiums for COMEX contracts compared to those on the LME have decreased from their peak last summer, which has discouraged metal flows to the U.S.

Source: HSL Report (HSL Prime Research Commodity Daily report 06-02-26)