Prime Research Commodity Weekly Report: 21 September 2026

Global Market Round Up

Gold prices rose to a one-week high on Friday, securing their first weekly gain in four weeks as easing crude oil prices reduced concerns over prolonged inflationary pressures. The decline in oil prices helped improve the broader macroeconomic backdrop for precious metals by reducing expectations of persistent inflation and limiting upward pressure on interest rates.

Gold also held firm despite the Federal Reserve’s first interest-rate increase since 2023 and a recent rise in Treasury yields. The resilience suggests that much of the expected policy tightening had already been priced into the market. The earlier decline in gold had also encouraged investors to build short positions, and the subsequent recovery triggered a wave of short covering, adding momentum to the rebound. From a technical perspective, gold and silver have managed to hold key support levels despite the higher cost of money, indicating that downside pressure has eased. This technical resilience, combined with softer oil prices, could provide a supportive backdrop for precious metals in the near term.

Physical demand, however, remained mixed. Gold demand in India was subdued during the week as buyers remained cautious and waited for more favorable price levels, while premiums in China remained broadly steady, supported by continued investment demand.

Crude oil prices climbed sharply on Monday following drone attacks on Saudi Arabia’s East-West pipeline, raising concerns over potential disruptions to global supply. However, prices gradually eased through the week after Saudi Arabia indicated that restoration efforts were progressing faster than initially expected. Despite retreating from Monday’s highs, crude oil ended the week modestly higher and remained at elevated levels. Geopolitical risks remained elevated as Saudi Arabia and Iran-backed Houthi forces in Yemen exchanged fresh strikes on Thursday. Any further escalation could revive concerns over regional supply disruptions and provide renewed support to crude prices. Moving forward, crude oil prices are likely to consolidate at elevated levels, with the pace of Saudi pipeline restoration and Middle East geopolitical developments remaining key drivers. Natural gas prices recovered from a one-week low on Friday and settled higher, supported by pre-weekend short covering.

Looking ahead, the U.S. calendar remains light this week, but Fed officials’ speeches could move the dollar and Treasury yields and offer fresh clues on the next policy move. Meanwhile, Middle East developments and broader geopolitical risks are likely to remain the key focus for markets.