DBT Bureau
Pune, 31 August 2026
Geojit Investments’ commodity report said precious and industrial metals witnessed heightened volatility amid geopolitical tensions, inflation concerns and expectations that U.S. interest rates could remain higher for longer. Gold prices declined amid a stronger U.S. dollar and hawkish signals from the Federal Reserve, while renewed U.S.-Iran hostilities lifted crude oil prices on supply concerns. Meanwhile, copper and zinc remained near recent highs, supported by tightening supply conditions and increased speculative buying.
- Gold spot prices declined amid renewed inflation concerns and stronger expectations of higher U.S. interest rates following hawkish remarks from Federal Reserve Chair. Despite the pullback, gold remained on track for its largest monthly gain since January.
- U.S. forces struck two Iranian missile launchers on Larak Island on Sunday, marking the first known American military action against Iran since late July and Iran responded by attacking U.S. forces stationed in Jordan. The renewed escalation in the Middle East heightened inflation concerns and reinforced expectations that U.S. interest rates could remain higher for longer.
- Spot gold traded near USD 4450 per troy ounce, while spot silver traded around USD 67 per troy ounce.
- At the Jackson Hole symposium, Fed Chair Kevin Warsh said the U.S. central bank would need to take further action if policymakers were not sufficiently confident that inflation is moving sustainably back toward the 2% target.
- U.S. Dollar index, a gauge that measures greenback against a basket of six currency rivals, traded above 99 mark.
- Total U.S. debt has topped USD40 trillion for the first time, drawing fresh warnings that a fiscal crisis is brewing.
- The U.S. economy grew at an annualized rate of 1.5% in the second quarter of 2026.
- The U.S. inflation rate slowed to 3.4% annually in July from 3.5% in June, indicating a modest easing in price pressures.
- Crude oil prices surged more than 3.5% on Monday after the U.S. renewed U.S.-Iran hostilities heighted supply fears.
- Copper prices on both the LME and MCX platform remained in the vicinity of recent highs supported by ongoing concerns over tightening supply conditions.
- LME zinc traded near its highest level since June 2022, while MCX zinc futures surged to a record high, as rising stockpiles in China, the world’s largest metals consumer, heightened concerns about supply shortages in other regions and fueled speculative buying.
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