HSL Prime Research Commodity Weekly Report 31 August 2026

Global Market Round Up

Commodity markets ended the week with a mixed performance, as a stronger U.S. dollar weighed heavily on precious metals and crude oil. Gold and silver saw sharp corrections after their recent strong rallies, while industrial metals remained relatively resilient.

Precious metals extended their losses on Friday after Federal Reserve Chair Kevin Warsh delivered a hawkish message in his speech at the Jackson Hole Economic Symposium, signaling that further interest-rate increases may be necessary if inflation fails to moderate. The stronger policy outlook triggered a recovery in the U.S. dollar and Treasury yields, putting significant pressure on precious metals. Gold fell more than 3%, while silver declined nearly 4%.

Looking ahead, precious metals may remain under pressure in the short-term following Friday’s sharp correction and the break below important technical support levels. This suggests that further consolidation or correction cannot be ruled out. However, the broader medium- to long-term trend remains bullish, and a recovery could emerge once prices approach strong demand zones.

The Fed is likely to remain highly data-dependent ahead of its September meeting. This week’s U.S. Non-Farm Payrolls report, followed by upcoming inflation data, will be critical in shaping expectations for the next policy decision. Signs of weakness in employment could revive expectations of easier monetary policy and support precious metals, while stronger-than-expected data could increase rate-hike expectations and weigh on prices.

Crude oil futures posted weekly losses as markets grew more confident that tighter U.S. sanctions on Iran could push both sides toward negotiations rather than a further military escalation. Progress between Iran and Oman on establishing a maritime corridor through the Strait of Hormuz also helped ease supply concerns. Meanwhile, stronger Saudi oil loadings and Iraq’s plans to transfer crude through routes outside the Persian Gulf suggest that regional producers are increasingly finding alternative ways to maintain exports without relying fully on the Strait of Hormuz. The recent decline in crude prices therefore reflects growing confidence in alternative supply routes rather than a complete normalization of oil flows through the region. Natural gas edged lower on Friday on profit booking but still posted a third consecutive weekly gain, supported by warmer weather and rising LNG export demand.

The week ahead will focus on U.S. employment data, particularly Friday’s Nonfarm Payrolls report, along with manufacturing PMI data from China, India and the U.S., offering key signals on Fed policy and global economic activity.