DBT Bureau
Pune, 11 June 2026
Global commodity markets remained volatile as escalating Middle East tensions, persistent inflation concerns, and weakening Chinese import demand influenced the outlook for precious metals, base metals, and crude oil prices.
- Spot gold fell to its lowest level since November 2025 and held near that range, as rising inflation concerns and the prospect of further interest rate hikes weighed on investor demand for the precious metal. US inflation climbed to 4.2% in May, reinforcing expectations that policymakers may tighten monetary policy, which in turn reduced the appeal of non-yielding assets like gold.
- Additionally, renewed clashes in the Middle East dampened hopes for a resolution to the U.S.–Israeli tensions involving Iran, further fueling inflation concerns and adding downward pressure on bullion prices.
- The U.S. and Iran traded air attacks for a second straight day on Thursday, with President Donald Trump vowing further strikes if Tehran does not immediately agree to a peace deal.
- India has tightened restrictions on silver imports by adding grain and powder forms to the list of restricted categories and mandating prior valid import authorization, as the world’s biggest consumer of the metal tries to rein in shipments and ease pressure on the rupee.
- Tensions escalated in the Middle East after Israel announced on Monday that it carried out strikes on a petrochemical plant in southwestern Iran, along with additional attacks targeting military sites.
- Crude oil prices edged lower after rising in the previous session on escalating U.S.–Iran tensions, as traders turned cautious and reassessed the potential impact of the renewed hostilities on supply and demand dynamics.
- China’s May crude imports slumped 29% to their lowest levels in eight years, extending a sharp decline in the world’s largest oil importer that is helping keep a lid on global oil prices. Imports dropped to 33.08 million tonnes, or 7.79 million barrels per day, the lowest level since February 2018.
- China’s copper imports declined 1.33% month-on-month to 446,000 tonnes, with January–May imports at 2.01 million tonnes, down 7% year-on-year.
- China’s aluminium exports rose 5.68% in May to 632,000 tonnes, driven by supply disruptions in the Gulf region linked to the Iran conflict. China’s unwrought aluminium and product exports climbed 5.68% in May to 632,000 metric tonnes.
Source: Geojit Investments Limited
