DBT Bureau
Pune, 16 March 2026
Global commodity markets showed mixed trends as a stronger U.S. dollar pressured precious metals, geopolitical tensions in the Middle East supported crude oil and aluminium prices, while weaker demand signals from China weighed on copper markets.
- Precious metals declined as a stronger U.S. dollar weighed on prices, after expectations for near-term Federal Reserve rate cuts faded amid inflation concerns driven by rising energy costs following the ongoing crisis in Iran.
- Spot gold fell below USD 5,000 per troy ounce, while spot silver slipped under USD 80 per troy ounce.
- US Dollar index, a measure of greenback against six currency rivals, steadied above 100 marks.
- U.S. inflation held steady in February at 2.4%, aligning with expectations and highlighting persistent underlying price pressures.
- Crude oil prices rose after Donald Trump warned of additional strikes on
Iran’s Kharg Island, which accounts for roughly 90% of the country’s oil exports, following earlier attacks on military targets there. The threat prompted a defiant response from Tehran, including vows of further retaliation.
Renewed risks to Middle Eastern oil infrastructure, despite Trump urging nations to help protect the Strait of Hormuz, pushed prices higher. - The OPEC+ has announced a minor increase in oil production of 206,000 barrels per day, starting in April 2026.
- Aluminium prices hovered in the vicinity of record highs as the Middle East conflict that showed no signs of easing. The conflict driven supply disruptions from this key aluminium producing region had pushed prices upward, as the turmoil threatened to disrupt shipments from an area that contributed about 8% of global aluminium output last year.
- Copper inventories across the world’s three largest metal exchanges have surpassed 1 million metric tonnes for the first time in over 20 years, driven by weak demand in China and recent stockpiling in the U.S. Combined stocks on the COMEX, LME, and SHFE now stand at 1,012,065 MT.
- China’s unwrought copper imports declined by 16.1% year-on-year to 700,000 metric tonnes in the two months from January to February.
- U.S. natural gas storage is on track to end the November 2025-March 2026 winter withdrawal season at a four-year low of 1.789 trillion cubic feet on March 31.
Source: Geojit Investments
