HSL Prime Research Commodity Daily Report: 12 August 2026

GLOBAL MARKET ROUND UP

Gold steadied around $4,400 an ounce on Wednesday following a volatile start to the week, as investors remained cautious ahead of key U.S. inflation data that could provide fresh clues on the Federal Reserve’s policy outlook. The July consumer price report due today, followed by producer price data on Thursday, will be closely watched, particularly after weaker-than-expected U.S. employment data last week reduced expectations of a near-term rate hike.

Markets remain divided over the possibility of a 25-basis-point Fed rate hike in September after rates were left unchanged in July, with elevated crude oil prices continuing to reinforce inflation concerns and a relatively hawkish policy bias. Meanwhile, investors are closely monitoring developments around a potential U.S.-Iran agreement to reopen the Strait of Hormuz. Pakistan’s defense minister said Washington and Tehran were “close to some sort of arrangement,” while reports suggested that talks between Iran and Oman had reached an advanced stage.

During the day session, precious metals are likely to remain in a consolidation phase ahead of the U.S. inflation report, which could serve as the next major catalyst for price action. Volatility is expected to increase during the evening session following the release, as markets reassess the Federal Reserve’s interest-rate outlook.

Crude oil prices held above $84 per barrel on Wednesday after rising for a fourth consecutive session, as investors weighed mixed signals surrounding a potential U.S.-Iran agreement. Uncertainty over the outcome of negotiations continued to keep geopolitical risk elevated in the oil market. Market attention now turns to the IEA and OPEC monthly reports, which are expected to provide fresh assessments of global oil demand, supply, and the broader outlook for energy markets. On the inventory front, industry data showed U.S. crude stockpiles increased by 9.1 million barrels last week, the largest weekly build since February. Natural gas prices recovered modestly after the largest U.S. storage build since February, highlighting comfortable medium-term supply conditions.

Copper prices traded higher in early Asian trade, supported by tightening supply fundamentals. The concentrate market remains constrained by limited ore availability and weak smelting economics, reinforcing expectations of tighter refined copper supply and providing continued support to prices.