HSL Prime Research Commodity Daily Report: 27 August 2026

Gold climbed to around $4,620 an ounce on Thursday, recovering from the previous session’s losses and remaining near a three-month high. The so-called debasement trade continues to support demand as investors hedge against concerns over U.S. debt sustainability and potential dollar weakness.

Meanwhile, July PCE inflation came in above expectations and remained elevated, reinforcing a cautious outlook for U.S. interest rates. Market focus now turns to Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday for further clues on the Fed’s policy stance, although clear guidance on the September decision is unlikely.

Meanwhile, the U.S. dollar index recovered modestly as stronger-than-expected inflation and economic data lent some support to a hawkish Fed policy outlook. Market attention now turns to the Jackson Hole symposium, along with Bank of Japan Deputy Governor Ryozo Himino’s speech and press conference, for further clues on the outlook for U.S. and Japanese monetary policy.

Crude oil slipped below $82 per barrel on Thursday, extending losses for a fourth consecutive session as signs of diplomatic progress in the Middle East eased some supply concerns. Iran and Oman reached an agreement on trade on their respective sides of the Strait of Hormuz and related revenues, although Tehran indicated that reopening the key waterway would require broader arrangements. Meanwhile, President Donald Trump said around 10 million barrels of oil passed through Hormuz on Tuesday and reiterated that the waterway had been cleared. However, renewed geopolitical risks elsewhere, including reports of a potential escalation in Ukraine, continue to keep global energy-risk premiums in focus.

Natural gas futures surged more than 2% on Wednesday to a more than one-month high, supported by forecasts for warmer-than-normal temperatures extending into September. The hotter outlook boosted expectations for stronger cooling demand and provided momentum ahead of this week’s closely watched EIA storage report.

Copper prices edged higher in early Asian trading, with three-month LME copper up 0.2% at $14,280 per ton. The market continues to draw support from tightening physical availability, as copper inventories across major global warehouses, including the LME, remain on a declining trend.