DBT Bureau
Pune, 1 July 2026
According to the latest Geojit Investments commodities report, global commodity markets remained driven by geopolitical developments, central bank policy expectations, and shifting supply-demand dynamics, with renewed Middle East tensions, the U.S. Federal Reserve’s policy stance, and key data on crude oil, precious metals, copper, and China’s manufacturing activity shaping investor sentiment.
- Renewed tensions in the Middle East have heightened concerns in commodity markets. However, reports that Iran and the United States have agreed to halt recent Gulf hostilities and resume discussions over the Strait of Hormuz have provided some relief.
- Spot gold traded above USD 4000 per troy ounce after posting its largest quarterly decline in more than a decade, as expectations of additional U.S. Federal Reserve rate hikes weighed on prices. Meanwhile, spot silver traded around USD 58 per troy ounce, following its biggest quarterly drop.
- U.S. Federal Reserve kept interest rates steady 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 held steady, but remained on track of second monthly decline, as Iran and the U.S. agreed to resume negotiations. Meanwhile Middle Eastern producers continued loading oil and liquefied natural gas despite renewed attacks on ships.
- Saudi Arabia is likely to sharply cut its official selling prices for crude oil to Asia in August to a four-month low, after spot crude markets tumbled on rising Middle Eastern supplies.
- Iraq is reportedly considering all available options if its OPEC quota is not significantly increased and has weighed leaving the producer group.
- 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.
- China’s Manufacturing Purchasing Managers’ Index (PMI) rose to 50.3 in June, signaling an expansion in manufacturing activity, supported by continued growth and improving performance in the high-tech manufacturing sector.
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