DBT Bureau
Pune, 4 August 2026
Spot gold edged lower amid mixed signals from the U.S. and Iran regarding efforts to resolve their conflict, heightening market uncertainty. Concerns were further amplified by the latest attack on commercial shipping in the Strait of Hormuz, underscoring ongoing risks to global energy supplies and regional stability.
Spot gold traded near USD 4,050 per troy ounce, while spot silver edged higher to around USD 59 per troy ounce.
Meanwhile, the FOMC kept its benchmark interest rate unchanged at 3.50%-3.75%, with Fed Chair Kevin Warsh reaffirming the central bank’s steadfast commitment to bringing inflation under control.
Crude Oil Advances on Supply Security Concerns
Crude oil prices advanced as prospects for a diplomatic resolution between the U.S. and Iran remained uncertain, while ongoing disruptions to oil shipments through key maritime trade routes continued to raise concerns over global supply security. NYMEX WTI crude gained by more than 2%, while ICE Brent crude jumped around 2.8%.
Base Metals: Zinc Hits Multi-Year High, Aluminium Stocks at 28-Year Low
LME zinc futures surged above USD 3,650 per tonne, reaching their highest level since June 2022, amid concerns that lower mine and smelter output in China could tighten near-term supply.
Aluminium inventories in LME warehouses fell to a 28-year low of 271,275 metric tonnes as supply disruptions in the conflict-affected Middle East prompted consumers to draw down stocks to secure metal supplies.
Mixed Economic Signals from the U.S. and China
U.S. inflation eased to 3.5% year-on-year in June, while core inflation also moderated, indicating a further slowdown in underlying price pressures. However, the U.S. economy expanded by just 1.5% in Q2 2026, missing market expectations and indicating slower growth.
On a more upbeat note, the U.S. ISM Manufacturing PMI increased to 55.6% in July 2026 from 53.3% in June, signaling an acceleration in manufacturing sector expansion.
In contrast, China’s factory activity unexpectedly slipped into contraction in July, pressured by shrinking new orders that reinforced concerns over slowing economic growth, weak demand at home, and elevated production costs.
Disclaimer : Investment in securities & commodities market are subject to market risks, read all the related documents carefully before investing
Source: Geojit Investments Limited
