HSL Prime Research Commodity Daily 06 August 2026

GLOBAL MARKET ROUND UP

Gold recorded its strongest gain in six months as improving prospects for the reopening of the Strait of Hormuz alleviated energy-driven inflation risks, thereby reducing expectations of a more aggressive monetary policy response from the U.S. Federal Reserve. Iran’s announcement of an agreement with Oman on a proposed shipping route through the strategically important waterway has strengthened expectations that energy flows could gradually resume. Reflecting these developments, market pricing has shifted to imply only one U.S. Federal Reserve rate hike by year-end, compared with expectations for two rate increases just a week earlier, highlighting the easing of inflation and policy concerns.

Oil prices remained under pressure as Iran announced it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, raising expectations of a gradual resumption in energy flows through the strategically important waterway. Additional downside came after U.S. President Donald Trump stated that Washington is engaged in discussions with Tehran and that negotiations are ongoing, reinforcing market optimism that an agreement to restore shipping traffic could be reached.

Meanwhile, U.S. Energy Information Administration data showed that commercial crude oil inventories rebounded from their lowest level since 2018, while stockpiles at the Cushing, Oklahoma delivery hub increased above the 20 million barrels threshold widely regarded as the minimum operational level, further weighing on crude prices.

US Copper prices climbed to a record high as investors awaited clarity on potential U.S. tariffs while also monitoring progress toward reopening the Strait of Hormuz, which improved risk sentiment across financial markets. The metal has gained approximately 18% on the Comex exchange year-to-date, widening its premium over London Metal Exchange (LME) prices as traders continue to position ahead of any announcements regarding U.S. import tariffs on copper.

The U.S. dollar traded within a narrow range against major currencies as investors remained cautious ahead of the release of the U.S. nonfarm payrolls report on Friday, which is expected to provide further guidance on the Federal Reserve’s monetary policy outlook and the timing of future interest rate decisions.