HSL Prime Research Commodity Weekly Report: 24 August 2026

Global Market Round Up

Commodity markets delivered a strong performance last week, led by a sharp rebound in precious metals and another advance in crude oil. Spot gold climbed above $4,600 an ounce for the first time in nearly three months, supported by a sharp decline in the U.S. dollar and renewed demand for safe-haven assets. The U.S. Dollar Index fell 0.87% over the week to a three-month low, providing an important tailwind for dollar-denominated commodities. The rally gained momentum after the U.S. Treasury announced plans to at least double its purchases of longer-dated government bonds to help contain borrowing costs. The move came amid a sharp selloff in long-term U.S. Treasuries and growing concerns over the outlook for government debt and the dollar. Although Treasury yields subsequently recovered as investors questioned the effectiveness of the measures, gold managed to retain most of its gains.

Underlying demand remains supportive, with strong investment flows and continued central-bank purchases, particularly from China, providing a solid foundation for the precious metal. Expectations of a less restrictive Federal Reserve policy have also strengthened the outlook for gold and silver.

Near-term Outlook: The Jackson Hole Symposium will be the key macro event in the coming week. Any indication from Federal Reserve officials of a less aggressive monetary policy stance over the year ahead could provide further support to gold, while a more hawkish message may trigger profit-taking following the recent rally.

Crude oil futures ended the week higher as the U.S.-Iran conflict showed little progress toward a resolution, keeping geopolitical risks elevated. The U.S. is preparing to increase economic pressure on Iran, while uncertainty over the reopening of the Strait of Hormuz continues to support prices. However, gains were limited by comments from Iranian President Masoud Pezeshkian calling for an end to the conflict, which raised hopes for a potential diplomatic breakthrough. Crude oil is likely to remain sensitive to developments between the U.S. and Iran, with further escalation potentially supporting prices, while signs of diplomatic progress could encourage profit-taking.

Natural gas futures settled higher, marking a second consecutive weekly gain as hot summer weather boosted electricity demand for air conditioning. However, gains remained limited as strong production and an inventory surplus limit rally attempts and the market looks increasingly beyond August to cooler shoulder-season weather.

Looking Ahead: The commodity market enters the new week with strong momentum, led by precious metals and crude oil. A weaker U.S. dollar remains supportive, while U.S. PCE inflation data and the Jackson Hole Symposium will be key drivers. Volatility is likely to remain elevated as markets reassess the outlook for interest rates and inflation.