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

Gold and Silver Price

Gold and silver declined sharply on Tuesday as a stronger U.S. dollar and rising inflation concerns dampened demand for safe-haven assets, even as geopolitical risks remained elevated. The key tension in the market revolved around the interaction between energy prices and inflation, as a surge in crude oil prices clashed with earlier hopes that inflationary pressures would continue to ease. Higher energy costs can quickly feed into broader inflation expectations, potentially slowing the pace of interest rate cuts by the Federal Reserve. This dynamic tends to support the U.S. dollar and Treasury yields, while weighing on non-yielding assets such as gold and silver.

The U.S. Dollar Index rose more than 0.5% to move above the 99 level on Tuesday, extending Monday’s 0.8% gain and reaching its highest level since mid-January. Meanwhile, market expectations for the next Federal Reserve rate cut have shifted from July to September, although two 25-basis-point reductions are still largely priced in by the market.

Crude Oil & Natural Gas Price

Crude oil extended its rally on Tuesday, with WTI futures settling 4.67% higher at $74.56 per barrel, adding to the previous session’s gain of over 6%. Prices were supported by escalating tensions involving Iran, which disrupted fuel shipments and raised concerns about supply disruptions across Middle Eastern oil and gas markets. Earlier, Saudi Aramco halted operations at its largest refinery in Ras Tanura following a drone strike, while shipping through the Strait of Hormuz slowed as some insurers considered withdrawing war-risk coverage for vessels in the Persian Gulf.

Natural gas rose more than 3% on Tuesday, building on Monday’s 3.5% gain as supply risks increased amid the widening conflict in the Middle East. Iran announced the closure of the Strait of Hormuz and warned that it would target any vessel attempting to transit the strategic waterway. The disruption could potentially boost demand for U.S. LNG, especially as the domestic natural gas market is currently running a 0.3% deficit compared to its five-year average.

Copper and Base Metals Price

Copper and other base metals declined on Tuesday as traders adopted a cautious stance ahead of key policy signals from China. Investors are closely watching the annual convention of the National People’s Congress in the world’s top metals consumer for indications on economic policy and demand outlook. The annual “Two Sessions,” scheduled from March 4 to around March 11, is expected to outline China’s key economic targets and stimulus measures.