DBT Bureau
Pune, 26 June 2026
Global commodity markets remained under pressure as a stronger U.S. dollar and the U.S. Federal Reserve’s hawkish stance weighed on investor sentiment. Precious metals extended losses, while crude oil slipped to a four-month low amid improving supply expectations following the reopening of the Strait of Hormuz and easing concerns over Middle East disruptions. According to the latest report from Geojit Investments, below are the key developments across precious metals, energy, and base metals markets.
- Precious metals extended losses due to a stronger U.S. dollar, driven by expectations of potential Federal Reserve interest rate hikes later this year. Spot gold traded below USD 4000 per troy ounce, while spot silver traded around USD 57 per troy ounce.
- The U.S. dollar index, which tracks the greenback against a basket of six major currencies, hovered above 101 mark, above one-year high.
- U.S. Federal Reserve kept interest rates unchanged within the 3.5%–3.75% range and indicated the possibility of a rate hike later this year, citing the growing concerns over inflation remaining above its 2% target.
- Crude oil prices fell, extending this week’s losses to hit fresh four-month lows as more oil tankers are set to move out of the Strait of Hormuz.
- The reopening of the Strait of Hormuz will flood the global oil market with millions of barrels currently stranded in the Middle East Gulf. Additionally, the removal of U.S. restrictions on Iranian crude could unlock around 72 million barrels held on tankers west of Chabahar, with volumes likely to grow further if broader sanctions relief is implemented by U.S.
- Iraq is reportedly considering all available options if its OPEC quota is not significantly increased and has weighed leaving the producer group.
- Middle East crude markets weakened significantly following the U.S.–Iran agreement, which improved global supply expectations. Dubai’s premium to swaps fell to a 46 cent discount, the first contango since January, after reaching USD2.06 per barrel earlier in the week.
- China’s state-owned refiners are considering resuming Iranian oil purchases, but competing alternative supplies and falling domestic fuel demand will temper their interest.
- The global refined copper market showed a 145,000 metric tonnes deficit in April, compared with a 23,000 metric tonnes surplus in March, the International Copper Study Group (ICSG) said.
- World refined copper output in April was 2.42 million metric tonnes, while consumption was 2.57 million metric tonnes.
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