DBT Bureau
Pune, 18 March 2026
Global commodity markets exhibited cautious trading as participants awaited the U.S. Federal Reserve’s interest rate decision while evaluating the broader implications of the ongoing Middle East conflict on market sentiment.Precious metals held steady amid the uncertainty, balancing safe-haven appeal against pressures from elevated energy costs and shifting expectations for monetary policy.Crude oil prices declined, easing somewhat on reduced immediate supply worries following Iraq’s resumption of exports (including via the Ceyhan port after agreements with Kurdish authorities) and in anticipation of an OPEC+ production increase set to begin in April.In contrast, industrial metals such as aluminium remained close to record highs, supported by persistent supply disruptions tied to regional tensions, even as softer import figures from China pointed to potentially weaker demand for base metals.The U.S. dollar, inflation dynamics, and natural gas storage reports continued to influence the overall trajectory across energy and commodity sectors
- Precious metals traded steadily as investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision expected later today, seeking fresh signals on the central bank’s monetary policy direction. Market participants are also carefully evaluating the economic fallout from the Middle East conflict, which has weighed on sentiment in the precious metals.
- Spot gold traded around USD 5,000 per troy ounce, while spot silver traded around USD 80 per troy ounce.
- US Dollar index, a measure of greenback against six currency rivals, traded slightly below 100 marks.
- U.S. inflation held steady in February at 2.4%, aligning with expectations and highlighting persistent underlying price pressures.
- Crude oil prices fell after Iraq resumed crude exports via pipeline to Turkey’s Mediterranean port of Ceyhan, providing hopes for some relief amid disrupted supply from Gulf producers.
- 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.
- China’s imports of unwrought aluminium and aluminium products fell 10% year-on-year in February. The world’s top consumer imported 290,000 metric tonnes of unwrought aluminium and aluminium products in February.
- 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
