HSL Prime Research Commodity Daily Report: 19 June 2026

Global Market Round Up

Precious metals remained under pressure in Asian trading on Friday, extending losses as investors focused on the Federal Reserve’s increasingly hawkish policy outlook. Spot gold slipped below the $4,200 mark, erasing much of the recovery seen earlier in the week as expectations for higher interest rates outweighed support from easing geopolitical tensions.

Market sentiment was dented after Federal Reserve Chairman Kevin Warsh reiterated the central bank’s commitment to restoring price stability and signaled growing support among policymakers for additional rate hikes if inflation remains elevated. The comments reinforced expectations that U.S. monetary policy could stay restrictive for longer, supporting the U.S. dollar and Treasury yields.

While the interim U.S.-Iran peace agreement helped lower crude oil prices and ease concerns over energy-driven inflation, the resulting improvement in the inflation outlook was not enough to offset the impact of the Fed’s hawkish stance. As a result, investors continued to reduce exposure to non-yielding assets such as gold and silver.

Crude oil prices remained under pressure as the interim U.S.-Iran peace agreement came into effect, allowing energy shipments through the Strait of Hormuz to gradually resume. The easing of tensions encouraged a return of tanker traffic through the key waterway, raising expectations that oil supplies disrupted by months of conflict could begin flowing back into global markets.

The reopening of one of the world’s most important energy corridors has significantly reduced geopolitical risk premiums, weighing on crude prices and improving the outlook for global supply. Before the conflict, the Strait of Hormuz handled roughly one-fifth of global energy shipments, making its restoration a major development for oil markets.

However, downside pressure may be limited by tightening U.S. inventories. Stockpiles at Cushing, Oklahoma—the largest U.S. crude storage hub—have fallen to around 20 million barrels, a level widely viewed by market participants as the minimum required for smooth operations. The low inventory levels highlight ongoing supply tightness and could provide support to oil prices despite improving geopolitical conditions.

Natural gas consolidated in a broad range after the latest EIA storage report largely matched market expectations.

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