HSL Prime Research Commodity Daily Report 25 August 2026

GLOBAL MARKET ROUND UP

Gold retreated on Tuesday after briefly climbing above $4,650 an ounce, reaching its highest level in more than three months, as investors booked profits following the strong rally in recent weeks. The broader move has been supported by renewed interest in the so-called debasement trade, as concerns over U.S. fiscal sustainability, inflation and dollar weakness strengthen gold’s appeal.

The U.S. Treasury’s decision to expand its buyback program for long-dated government debt has added to these concerns. Treasury Secretary Scott Bessent has indicated that further increases in buybacks could be considered, while also signaling a longer-term fiscal plan. However, investors remain cautious over whether these measures can provide a lasting solution to elevated borrowing costs and growing concerns over U.S. debt sustainability.

Investment demand is also strengthening, with gold-backed ETFs recording increased inflows in recent weeks, indicating broader participation and providing additional support to prices.

On the macro front, markets will focus on upcoming U.S. inflation data and Federal Reserve Chair Kevin Warsh’s speech later this week for fresh clues on the interest-rate outlook and the next direction for gold.

Crude oil edged higher on Tuesday as traders assessed the impact of the U.S.’s latest measures against Iran. Treasury Secretary Scott Bessent announced a new campaign to isolate Tehran, including sanctions on more than 60 entities, individuals and vessels, while countries continuing to do business with Iran could face additional U.S. penalties. President Donald Trump said affected countries would be given a specific timeline to sever ties with Tehran or face unilateral sanctions. However, uncertainty remains over whether the measures will accelerate diplomatic efforts or further delay a resolution to the U.S.-Iran conflict and the full reopening of the Strait of Hormuz, keeping geopolitical risk premium elevated and supporting crude oil prices.

Copper prices declined in Asian trading as the market faced increasing uncertainty from shifting trade policies and regional price arbitrage. While tight mine supply and growing demand from sectors such as artificial intelligence continue to provide underlying support, changing trade flows and policy developments are making the near-term price outlook more difficult to assess.