HSL Prime Research Commodity Daily Report: 29 September 2026

Global Market Round Up

Precious metals remained under pressure on Tuesday as elevated oil prices, higher Treasury yields and a firm U.S. dollar continued to weigh on bullion. Rising energy prices have heightened inflation concerns, while expectations of further Federal Reserve tightening have increased the opportunity cost of holding non-yielding assets. The dollar remained near a two-month high, while Treasury yields stayed elevated as markets assessed the prospect of additional rate increases. Hawkish comments from several Fed officials last week, citing resilient economic growth and a strong labour market, further reinforced expectations for tighter monetary policy, keeping the near-term outlook for precious metals subdued.

Market attention now turns to key U.S. economic releases, including non-farm payrolls, consumer confidence, GDP and PCE inflation, along with Eurozone inflation data. Manufacturing PMIs and further comments from Fed officials will also be closely watched for clues on the policy outlook and their potential impact on the dollar, Treasury yields and bullion.

Crude oil prices climbed above $93 a barrel on Tuesday as uncertainty over U.S.-Iran negotiations outweighed the resumption of flows through Saudi Arabia’s East-West pipeline. Markets remain focused on the prospects for reopening the Strait of Hormuz, with Iranian officials reportedly casting doubt on an agreement to end hostilities and restore navigation through the strategic waterway before the U.S. midterm elections. Recent talks between Washington and Tehran in New York made limited progress, while President Donald Trump rejected Iran’s latest proposal on reopening the Strait. However, the U.S. administration is reportedly considering sanctions relief and the release of frozen Iranian funds if meaningful progress is made towards a nuclear agreement. Meanwhile, Saudi Arabia has reportedly restored crude flows to around 3.5 million barrels per day following repairs to its East-West pipeline, providing an alternative export route that bypasses the Strait of Hormuz. Despite the restoration, geopolitical uncertainty remains a key source of support for crude prices.

Natural gas prices settled sharply lower on Monday after the force majeure on a gas pipeline in West Virginia was lifted, easing concerns over a prolonged supply disruption.

Copper prices edged higher in early Asian trading as investors weighed expectations of tighter monetary policy against a supportive physical market.