DBT Bureau
Pune, 21 May 2026
Global commodity markets witnessed mixed movements as geopolitical tensions, supply concerns, and policy shifts continued to influence investor sentiment. Gold prices weakened under pressure from rising U.S. Treasury yields and a stronger dollar, while crude oil eased amid optimism over a potential de-escalation in the Iran conflict and stable shipping activity through the Strait of Hormuz. In industrial metals, declining copper output in Chile raised supply concerns, while China’s aluminium production remained resilient, supported by healthy profit margins and strong manufacturing demand.
- Spot gold declined as rising Treasury yields and a stronger U.S. dollar pressured the metal, while upbeat comments from U.S. President Donald Trump hinting at a possible end to the Iran conflict limited the losses.
- U.S. President Donald Trump and China’s Xi Jinping agreed in Beijing on the need to keep the Strait of Hormuz open, underscoring shared concerns over disruptions to global energy supplies. However, their talks highlighted ongoing tensions as progress toward resolving the Iran conflict remains stalled.
- India has raised import tariffs on gold and silver to 15% from 6%, as part of efforts to curb overseas purchases of the metals and ease pressure on the country’s foreign exchange reserves.
- International Energy Agency said that the global oil supply is expected to fall short of demand this year, as the Iran conflict disrupts Middle East production and tightens market balances.
- Meanwhile, two supertankers departed the Strait of Hormuz on Wednesday, while another is in the process of exiting, after being stationed in the Gulf for over two months with a combined cargo of 6 million barrels of Middle Eastern crude oil.
- Crude oil prices edged lower as U.S. President Donald Trump reiterated that the Iran conflict would end “very quickly,” while the uninterrupted passage of two supertankers through the Strait of Hormuz supported market optimism.
- Copper output at Chile’s state owned Codelco declined 9.98% yoy in March to 110,900 tonnes. Production at Escondida, the world’s largest copper mine, dropped 15.75% to 101,600 tonnes, while Collahuasi, operated by Glencore and Anglo American, saw output fall 10.80% to 31,400 tonnes.
- China’s aluminium output remained strong in April, supported by strong margins. The country’s aluminium production rose by 3.1% from a year earlier to 3.87 million metric tonnes in April. In the first four months of the year, China produced 15.33 million metric tonnes, a rise of 3.5% from the same period last year.
