HSL Prime Research Commodity Daily Report:19 August 2026

GLOBAL MARKET ROUND UP

Gold moved higher in early Asian trade as U.S. Treasury yields eased from recent highs, providing support to the precious metal. Market attention now turns to the FOMC meeting minutes for further clues on the Federal Reserve’s policy outlook. The minutes could be particularly important after markets recently scaled back expectations for further monetary tightening. Any indication of persistent inflation concerns or divisions among policymakers could trigger volatility in gold, the U.S. dollar and Treasury yields.

Crude oil strengthened above $84 per barrel on Wednesday, extending gains for a fourth consecutive session as the U.S. and Iran showed no indication of reaching an agreement to end the conflict and reopen the Strait of Hormuz, keeping supply concerns elevated. President Donald Trump said there were no ongoing negotiations with Tehran while confirming that the U.S. naval blockade remains in effect.

Shipping risks in the Strait of Hormuz also remain despite Trump’s claim that the waterway is open and mines have been cleared, with limited air traffic still passing through the strategic route. Iranian forces have intensified hostilities over the past week, while eight attacks on vessels transiting Hormuz, including ships linked to the UAE and Saudi Arabia, have been reported so far this month.

U.S. industry data showed crude inventories declined by around 328,000 barrels last week, reversing part of the previous week’s large build. Markets now await the official EIA inventory report for confirmation.

Natural gas prices recovered as higher oil prices provided some broader energy-sector support, although record production and expectations for softer demand continue to limit upside.

Copper edged lower after a sudden inflow of metal into warehouses eased concerns about immediate physical tightness.

Today’s market focus is split between monetary policy and geopolitics. Softer Treasury yields and a weaker dollar are providing support to gold, but the FOMC minutes could introduce volatility if policymakers signal persistent inflation concerns or a slower path toward easing.

At the same time, crude remains the key cross-commodity risk factor. Continued disruption around the Strait of Hormuz is keeping oil above $84 and could reinforce inflation expectations, potentially complicating the Fed’s policy outlook. The EIA inventory report will therefore be important for determining whether the recent oil rally is being driven primarily by geopolitical risk or is also receiving support from tightening U.S. inventories.