Prime Research Commodity Daily Report: 29 October 2026

Precious metals remained under pressure on Thursday, holding near recent lows after the U.S. Federal Reserve kept interest rates unchanged as widely anticipated but provided limited guidance on the timing of its next policy move. The Fed cited elevated inflation and the need for further economic data before making its next decision.

Two officials dissented in favour of a 25-basis-point rate hike, keeping the possibility of a December increase in focus amid continued energy-related inflation pressures. Meanwhile, Fed Chair Kevin Warsh indicated that the central bank could consider reducing the number of policy meetings from eight to six annually, which could have implications for the timing and frequency of future policy decisions.

Market attention now turns to the U.S. PCE price index, the Fed’s preferred inflation gauge, for further clues on the monetary-policy outlook. Meanwhile, the U.S. dollar index traded around 102.1 on Thursday, holding near the previous session’s losses despite the Fed’s cautious stance.

Crude oil prices slipped to around $102 per barrel on Thursday, trimming gains from the previous session as investors assessed renewed diplomatic efforts to prevent further escalation of the Middle East conflict. Reports indicated that U.S. Vice President JD Vance had contacted Iranian national security official Mohsen Rezaei, while President Donald Trump confirmed that negotiations were underway through mediators but acknowledged uncertainty over their outcome. Iranian Foreign Minister Abbas Araghchi also reiterated that Tehran remained open to diplomatic solutions, easing some near-term geopolitical risk premium in oil prices. However, downside risks remain limited as tensions continue to threaten regional energy infrastructure. Repeated attacks by Yemen-based Houthi militants on Saudi Arabian energy facilities could disrupt oil supplies and keep geopolitical risk elevated, providing underlying support to crude prices.

Natural gas prices broadly consolidated within a narrow range as the market awaited the U.S. EIA’s weekly storage report. Inventories are expected to increase by around 75 Bcf, compared with a 77 Bcf injection in the previous week.

Copper prices edged lower in early Asian trading after rising in the previous session, as easing concerns over U.S. copper outflows and signs of softer seasonal demand weighed on the market outlook.