DBT Bureau
Pune, 28 Oct 2026
Precious metals faced pressure as rising crude oil prices and renewed Middle East tensions increased inflation concerns, while investors awaited the US Federal Reserve’s latest interest rate decision. Gold and silver remained in focus as higher inflation expectations and elevated US Treasury yields influenced market sentiment. Meanwhile, crude oil prices edged higher amid supply concerns, while copper market forecasts pointed to a growing surplus in the coming years. Natural gas prices declined on expectations of milder weather and weaker demand. The following is an overview of the latest commodity market trends, as per Geojit Investments Limited.
- Precious metals edged lower as renewed Middle East tensions and rising oil prices fueled inflation concerns, while investors awaited the upcoming Federal Reserve policy decision for further guidance on the interest rate outlook.
- The Fed is anticipated to leave interest rates steady at 3.75%-4.00% in the ongoing meeting, with market participants closely monitoring officials’ comments for clues on the future policy path and broader economic conditions.
- Spot gold traded above USD 4000 per troy ounce, while spot silver traded around USD 53 per troy ounce.
- US annual inflation accelerated to 3.7% in September 2026 from 3.4% in August, remaining well above the Federal Reserve’s 2% target and reinforcing market expectations that the central bank could deliver another interest rate hike sooner than previously anticipated.
- The U.S. Dollar Index, which tracks the greenback against six major currencies, eased to near 102.2 marks, while the benchmark 10- year U.S. Treasury yield seen around 4.99%, still in the vicinity of its highest level in nearly two decades.
- China’s central bank extended its gold-buying streak to a 23rd consecutive month in September, with the People’s Bank of China increasing its gold reserves to 77.47 million fine troy ounces from 76.73 million ounces in August.
- Crude oil prices edged higher as renewed Houthi attacks on Saudi Arabia underscored ongoing supply risks, although prospects of talks in Tehran helped ease concerns over a broader Middle East disruption.
- The number of commercial shipping attacks in and around the Strait of Hormuz marked the highest in the month October.
- The International Copper Study Group (ICSG) projects the global refined copper market surplus to expand from 104000 metric tonnes in 2026 to 368000 metric tonnes in 2027, driven by rising production. Global refined copper output is forecast to increase by 0.4% in 2026 and 3.4% in 2027, indicating a more comfortably supplied market in the coming years.
- NYMEX natural gas futures eased about 1% to a five-month low on forecasts for milder weather and lower demand over the next two weeks than previously expected.
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