HSL Prime Research Commodity Daily Report 05 August 2026

GLOBAL MARKET ROUND UP

Precious metals extended their gains on Wednesday as growing optimism over a potential U.S.-Iran agreement to reopen the Strait of Hormuz eased concerns over energy-driven inflation and reduced expectations of further monetary tightening by the Federal Reserve. Reports indicated that Qatar had drafted a proposal to facilitate an agreement, while U.S. Treasury Secretary Scott Bessent said a deal could be reached as early as Tuesday or Wednesday, boosting hopes for a diplomatic breakthrough.

The prospect of easing geopolitical tensions pushed crude oil prices lower, prompting investors to scale back expectations for additional U.S. interest rate hikes. Markets are now pricing in just one Fed rate increase by year-end, compared with two expected as recently as last week, improving the outlook for non-yielding assets such as gold and silver.

Additional support came from strong investment demand in China, where gold-backed exchange-traded funds recorded inflows for a 14th consecutive session through Monday—the longest streak since March. The sustained inflows suggest improving investor sentiment in the world’s largest bullion market following an extended period of ETF outflows and declining gold prices.

Crude oil prices extended their decline for a third consecutive session on Wednesday as optimism over a potential U.S.-Iran agreement to reopen the Strait of Hormuz eased concerns over supply disruptions in the Middle East. Brent crude slipped toward $78 per barrel, while WTI traded near $74 after falling more than 10% over the previous two sessions.

Oil prices have remained under pressure after President Donald Trump delayed further military action against Iran to allow more time for diplomatic negotiations. While a temporary agreement to restore commercial shipping through the Strait of Hormuz could ease immediate supply concerns, uncertainty persists as broader issues surrounding the conflict and Iran’s nuclear program remain unresolved.

Copper prices climbed to their highest level since mid-May, with LME copper rising above $14,000 per tonne as tightening global supply conditions continued to support the market. Additional support came from declining inventories at the London Metal Exchange, which fell to a five-month low amid reports of increased shipments to China to ease domestic supply shortages.