HSL Prime Research Commodity Daily: August 07 2026

GLOBAL MARKET ROUND UP

Gold traded within a narrow range as markets evaluated the implications of reported Iranian attacks in the Strait of Hormuz on the Federal Reserve’s interest rate outlook. Despite geopolitical tensions, bullion remained on track for a weekly gain of nearly 5%, supported by safe-haven demand. However, optimism over a potential de-escalation after US President Donald Trump indicated the conflict could end soon limited further upside. Gold has declined almost 20% since the onset of the US-Iran conflict in late February, as higher energy prices fueled inflation concerns and reinforced expectations of a prolonged higher interest rate environment.

Meanwhile, China’s central bank is increasing gold transfers to Hong Kong as part of efforts to strengthen the city’s position as a global bullion trading hub. The People’s Bank of China has been relocating a portion of its gold reserves from London to Hong Kong in support of a newly introduced gold clearing system, which is intended to enhance Hong Kong’s role in international gold trading and price discovery. The move underscores China’s broader strategy to expand regional bullion market infrastructure and diversify global gold trading channels.

Crude oil extended its gains after reports that Iran launched attacks on “hostile targets” in the Strait of Hormuz, raising concerns over potential disruptions to global energy supplies. Reports suggest Tehran is seeking restrictions on US and Israeli vessels transiting the strategic waterway as part of ongoing negotiations with Oman, while escalating regional tensions were further highlighted by Iran-backed Houthi forces claiming a large-scale attack against Yemen’s Saudi-aligned government. The developments have reinforced the geopolitical risk premium in oil prices.

Copper is on track for a record close on the LME, supported by tightening global supplies and strong demand. Large shipments to the US ahead of potential import tariffs have significantly reduced inventories in LME warehouses, strengthening market fundamentals.

The US dollar traded largely steady against major G10 currencies ahead of the US non-farm payrolls report, with investors awaiting fresh signals on the Federal Reserve’s interest rate outlook.