HSl Prime Research Commodity Weekly Report: 03 August 2026

Global Market Round Up

Commodity markets traded with a mixed tone during the week as investors digested the Federal Reserve’s latest policy guidance and a broad decline in the U.S. dollar. Precious metals remained largely range-bound, and energy prices retreated on easing supply concerns, while industrial metals posted modest gains supported by improving sentiment toward manufacturing demand.

The U.S. Dollar Index (DXY) fell sharply by 1.53%, marking its biggest weekly decline in several weeks, following softer-than-expected U.S. economic data and a more balanced interpretation of the Federal Reserve’s policy outlook. The weaker dollar offered some support to commodities.

Gold traded in a relatively narrow range throughout the week, with support from the weaker U.S. dollar offset by cautious investor positioning following the Federal Reserve meeting. Although the Fed maintained a cautious stance on monetary policy, markets remained divided over the timing of future rate cuts. The decline in the dollar helped limit losses in gold, but the absence of fresh geopolitical catalysts and relatively stable Treasury yields prevented a stronger recovery. Technically, the outlook remains moderately positive until spot gold holds above the $3,950 support level. Buying on dips is recommended, with initial resistance at $4,150. A decisive break above this level could extend the recovery further.

WTI crude oil retreated more than 5% during the week as markets reassessed geopolitical risks and supply expectations. Following the sharp rally in previous weeks, profit-taking emerged after concerns over immediate supply disruptions eased. Investors also monitored global inventory trends and OPEC+ production policy, while uncertainty surrounding global demand continued to weigh on sentiment. Despite the weekly decline, crude prices remain historically elevated, with geopolitical developments expected to remain key drivers in the near term.

Base metals continued their recovery for another week, buoyed by a weaker U.S. dollar and positive sentiment regarding manufacturing activity. Copper, zinc, and aluminium all recorded gains over the past week. The market is now anticipating key economic data, particularly the Manufacturing PMI figures from both the United States and China, which may offer further insights into global industrial demand.

Looking ahead, The coming week is expected to be dominated by labour market data and manufacturing surveys, which will play an important role in shaping expectations for future Federal Reserve policy.