HSL Prime Research Commodity Daily Report: 10 June 2026

Global Market Round Up

Precious metals extended their losses on Wednesday after the United States launched strikes against Iranian targets in response to the downing of a U.S. military helicopter, dealing a setback to ongoing efforts to secure a broader peace agreement in the Middle East.

The escalation renewed concerns that the conflict could widen further, threatening stability across the region and disrupting global energy supplies.

The latest developments have cast doubt on the durability of the fragile ceasefire and increased fears of prolonged disruptions around the Strait of Hormuz, a vital route for global oil and gas shipments. As a result, energy prices remained elevated, reinforcing concerns that inflationary pressures could persist for longer than previously expected.

The combination of rising inflation risks and expectations of a prolonged restrictive monetary policy environment continued to support the U.S. dollar and Treasury yields, both of which remained near recent highs. This created a challenging backdrop for non-yielding assets such as gold and silver, limiting investor demand and keeping precious metals on the defensive.

Crude oil prices rebounded on Wednesday as renewed concerns over developments in West Asia kept investors focused on potential supply risks. WTI crude traded nearly 1% higher during the session before trimming some gains after the United States announced the conclusion of its brief retaliatory military operation.

Despite the recent recovery, market sentiment remains mixed. While any ongoing disruption to energy flows from the region could quickly tighten supplies and lift prices, concerns over slowing global demand continue to limit the upside.

Meanwhile, industry data from the API showed U.S. crude inventories fell by 9.1 million barrels last week, the largest draw in four months. Market attention now turns to the government official U.S. inventory report due later today, which could further clarify the underlying supply-demand balance.

Markets are closely monitoring today’s U.S. inflation report, which is anticipated to offer crucial insights into the Federal Reserve’s policy direction. If the inflation reading is stronger than expected, it could bolster expectations for prolonged higher interest rates, thereby supporting the U.S. dollar and Treasury yields while exerting pressure on commodities.

On the other hand, if inflation data softens, it may alleviate policy concerns and enhance sentiment in commodity markets. This release is expected to increase market volatility.

Market Performance Snapshot