HSL Prime Research Commodity Daily Report 22 July 2026

Global Market Round Up

Precious metals extended their gains on Wednesday, supported by bargain buying and a modest pullback in the U.S. dollar. However, gains remained measured as escalating tensions in the Middle East kept investors cautious. Additional support came from robust physical demand, particularly from China, and continued central bank purchases, which remain key pillars of the bullion market. While gold continues to face near-term headwinds from expectations that the Federal Reserve will maintain a restrictive monetary policy, investor positioning has become relatively light following months of exchange-traded fund (ETF) outflows. This leaves room for fresh investor buying should market sentiment improve.

On the macro front, this week’s economic calendar remains relatively light, leaving markets to take direction primarily from movements in the U.S. dollar, crude oil prices, and developments in the Middle East. Investors will closely monitor headlines surrounding the U.S.-Iran conflict, as any signs of escalation or renewed diplomatic progress could significantly influence risk sentiment and drive price action across commodities in the absence of major economic data releases.

Crude oil prices climbed toward $85 per barrel on Wednesday, hovering near six-week highs as mounting supply risks across key global shipping routes continued to support the market. Investor sentiment remained cautious after President Donald Trump downplayed the prospects of near-term talks with Iran, while warning of additional military strikes and vowing retaliation if Iran-backed Houthi rebels disrupt shipping through the Red Sea. The Red Sea has become an increasingly important export corridor for Saudi Arabia during the conflict, allowing the kingdom to reroute part of its crude exports via pipelines and reduce its reliance on the Strait of Hormuz.

Natural gas remained under pressure, consolidating near the lower end of its recent range amid ample domestic supply and weaker LNG export flows. Storage inventories were 6.4% above the five-year seasonal average as of July 10, highlighting comfortable supply conditions that continue to cap price gains.

Copper prices eased modestly on Wednesday following a nearly 2% gain in the previous session, as investors paused to assess geopolitical risks in the Middle East. Despite the pullback, concerns over tightening copper supplies in China continued to underpin market sentiment and limit downside pressure.