HSL Prime Research Commodity Weekly 10 August 2026

Global Market Round Up

Bullion markets staged a strong rally during the week, with gold gaining more than 7% and silver advancing around 10%, supported by softer labour-market data and renewed bargain buying. Signs of cooling in the labour market strengthened expectations that the Federal Reserve may delay further rate hikes, weighing on the U.S. dollar and Treasury yields and improving the appeal of non-yielding precious metals. The sharp pullback seen previously also encouraged bargain hunters to re-enter the market, adding further momentum to the rally. Silver outperformed gold amid strong investment demand and its sensitivity to expectations for lower interest rates and improved economic activity.

Investor positioning also turned increasingly bullish, with hedge funds and money managers raising their net bullish bets on bullion to the highest level in more than six months in the week ending August 4, according to the latest CFTC data. Demand from China provided an additional boost, as gold-backed ETFs recorded further inflows, extending their longest streak since March, while the country’s central bank added 640,000 ounces to its bullion reserves in July, marking its 21st consecutive month of accumulation.

Base metals ended the week firmly in positive territory, with all metals closing in the green, led by strong gains in copper and aluminium. The rally was supported by robust underlying fundamentals, including expectations of tighter supply, resilient demand, and improving market sentiment. Copper and aluminium attracted additional buying interest as concerns over supply availability and firm physical demand strengthened the outlook. Market participants also continued to factor in the impact of U.S. tariff measures under President Trump, which raised expectations of tighter trade flows and potential supply disruptions, further supporting prices.

Crude oil prices remained highly volatile, with WTI plunging more than 7% as markets weighed developments surrounding the Strait of Hormuz and rising geopolitical risks in the Middle East. Hopes of a reopening of the strategic shipping route were tempered after Iran and Oman remained short of an agreement, although Iran’s Foreign Minister indicated that a deal to establish a shipping route through Hormuz was “very close.” The conflicting signals kept energy markets on edge, with the potential for disruptions to crude supply and shipping routes continuing to drive significant price volatility.