HSL Prime Research Commodity Daily: 09 October 2026

Global Market Round Up

Gold prices surged more than 1% to around $4,180 an ounce, rebounding from a two-month low earlier this week, as robust demand at a US 30-year Treasury auction helped cool long-term bond yields that had climbed to their highest levels in more than two decades.

Investors flocked to Thursday’s 30-year debt sale, lured by lower Treasury prices, triggering a pullback in yields across maturities. The retreat in yields offered a much-needed boost to non-yielding bullion, easing some of the pressure that had weighed on the precious metal.

Meanwhile, markets expect the US Federal Reserve to hold interest rates steady later this month, while signalling the possibility of higher borrowing costs over the medium term. St. Louis Fed President Alberto Musalem said Thursday that rates may need to rise over the next six to nine months to bring inflation back toward the central bank’s 2% target. However, he stopped short of backing an interest-rate hike at this month’s policy meeting.

Oil prices slipped, with WTI falling below $91 a barrel after President Donald Trump said the US would hold off on attacking Iran before November’s midterm elections, citing “productive discussions” with Tehran. However, tensions remain elevated as Iran intensifies attacks in the Strait of Hormuz, while the US naval blockade of Iranian ports stays in force. Meanwhile, Hurricane Isaias threatens US Gulf Coast production, prompting producers to shut in around 1.3 million barrels of crude per day, more than 60% of the region’s output, keeping global oil markets on edge.

Base metals rebounded after Thursday’s weakness. Copper is on track for a 1.5% weekly gain, buoyed by signs of recovering Chinese demand and potential supply disruptions at a Chilean mine. Low inventories in China, the world’s largest copper consumer, could trigger restocking in the coming weeks following a national holiday. Copper rose 1.2% to $14,474.50 a ton on the London Metal Exchange (LME), supported by tightening supply concerns and improving demand prospects.

The US dollar edged lower in Asian trading, as Treasury yields largely held their overnight decline following strong demand at a 30-year bond auction. The Dollar Index slipped 0.1%, while 10-year Treasury yields were little changed at 5.23% after falling six basis points on Thursday. Meanwhile, 30-year bond yields ticked up one basis point to 5.61%, following a seven-basis-point drop in the previous session.