HSL Prime Research Commodity Daily Report 18 June 2026

Global Market Round Up

Gold prices initially came under pressure after the Federal Reserve maintained its benchmark interest rate at 3.5%–3.75%, while updated projections signaled that some policymakers still expect at least one additional quarter-point rate hike later this year. The Fed’s decision highlighted growing concerns over persistent inflation, particularly following the rise in energy prices linked to the Iran conflict, reinforcing expectations that monetary policy could remain restrictive for longer.

However, bullion quickly reversed course in Asian trading on Thursday, rising more than 1% as investors welcomed the signing of an interim peace agreement between the United States and Iran. The deal eased concerns over energy supply disruptions and helped improve sentiment across commodity markets.

Despite the rebound, gold has remained confined to a relatively narrow trading range. While optimism surrounding the U.S.-Iran peace process has provided near-term support and offset the Fed’s hawkish tone, the market appears to be awaiting a stronger macroeconomic catalyst before establishing a clearer directional trend.

Crude oil prices eased in early Asian trading on Thursday as expectations of a U.S.-Iran agreement continued to weigh on the market. The proposed memorandum of understanding, which would see Iran reopen the Strait of Hormuz in exchange for the lifting of U.S. sanctions on its oil exports, has raised concerns that additional crude supplies could return to the global market, pressuring prices.

The Strait of Hormuz is a critical energy corridor that normally handles around one-fifth of global oil shipments, making any progress toward its reopening a significant development for energy markets.

However, losses may be limited by tightening U.S. supply conditions. Data from the Energy Information Administration (EIA) showed U.S. crude inventories fell by 8.3 million barrels last week, while stockpiles at the key Cushing, Oklahoma storage hub dropped to critically low levels. The sharp inventory drawdown could provide support to crude prices at lower levels despite the improving geopolitical outlook.

Natural gas futures ended a volatile session lower on Wednesday as traders remained cautious ahead of the closely watched weekly U.S. storage report. Market sentiment was also influenced by the development of the first named storm of the Atlantic hurricane season, which has the potential to disrupt energy production and transportation infrastructure along the Gulf Coast.

Commodities

Currencies

Global Equity Indices