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

Gold and Silver Price

Gold and silver declined sharply as a stronger U.S. dollar and rising U.S. Treasury yields weighed on precious metals. The dollar strengthened after a sharp rise in oil prices sparked renewed concerns that inflation could rise, thereby reducing expectations for a more dovish monetary policy stance from the Federal Reserve. Although geopolitical risks remain elevated, inflation concerns have somewhat dampened demand for safe-haven assets. The main concern in the market currently revolves around the relationship between energy prices and inflation expectations, as the recent surge in crude oil prices has challenged earlier hopes that inflationary pressures would continue to ease.

Crude Oil & Natural Gas Price

Higher energy costs tend to feed into broader inflation expectations, which could slow the pace of future interest rate cuts by the Federal Reserve. This environment typically supports the U.S. dollar and Treasury yields, while putting pressure on non-yielding assets such as gold and silver. At the same time, some safe-haven flows appear to have shifted toward the U.S. dollar as the market reassesses the policy outlook, with funds adjusting their positions accordingly. In the near term, we expect gold prices to remain volatile, with price swings possible on both sides.

Crude prices surged as the Middle East conflict entered its sixth day on Thursday with no signs of easing. Concerns that the fighting in the Persian Gulf could disrupt oil flows and potentially force production shut-ins lifted prices sharply, with WTI settling up 8.5% at $81.01 per barrel, marking its biggest single-day gain in nearly six years. However, oil futures edged lower in early Asian trading after U.S. Treasury Secretary Scott Bessent announced a temporary measure aimed at easing energy market pressures. The Treasury Department granted a waiver allowing Indian refiners to continue purchasing Russian crude, a move intended to stabilize global supply and counter Iran’s attempts to “take global energy hostage.”

Natural gas rebounded on Thursday after a sharp drop in the previous session, supported by U.S. storage data showing a larger-than-expected withdrawal as colder weather in the Northeast boosted heating demand.

Copper and Base Metals Price

Copper fell below $13,000 per ton as London Metal Exchange inventories rose to a 16-month high, creating a bearish overhang after the earlier rally that pushed prices above $14,500 per ton in January. Meanwhile, aluminum surged to its highest level since 2022 after Aluminium Bahrain BSC suspended deliveries to some customers under force-majeure clauses, tightening near-term supply.