DBT Bureau
Pune, 7 May 2026
As per a report by Geojit Investments, crude oil prices remained under pressure amid optimism over a potential U.S.-Iran peace agreement, while easing inflation concerns and a weaker U.S. dollar supported gains in precious and base metals.
- Precious metals rebounded today after U.S. President Donald Trump signaled that a potential peace deal with Iran could be within reach, leading to a decline in crude oil prices and easing inflation concerns. A softer U.S. dollar further provided support to bullion prices.
- The Dollar Index, that measures greenback against a basket of six currency rivals, slipped below 98 marks.
- The U.S. Federal Reserve maintained its benchmark interest rate within the 3.5%–3.75% range, as announced at the conclusion of its two-day policy meeting last week, citing ongoing concerns over inflation. This meeting marked the final one under the chairmanship of Jerome Powell, and there is a possibility that policy path could shift under the incoming chair.
- Crude oil prices continued to decline amid optimism over a potential U.S. –Iran peace agreement, although Iran maintained that it would only agree to a fair and comprehensive deal.
- The UAE’s exit from OPEC has raised doubts about unity within the cartel, highlighting growing discord among Gulf oil producers. This move undermines OPEC’s grip on global oil supply and deepens the rift between the UAE and its neighbor, Saudi Arabia.
- Base metals, with the exception of aluminum, moved higher today, led by strong gains in copper as easing concerns over economic fallout, driven by signals of a potential peace agreement, supported prices.
- China’s primary aluminium production in March rose 2.7% yoy, as supply fears linked to the Iran conflict supported prices of the light metal. Aluminium production climbed to 3.85 million metric tons in March.
- China’s refined copper output reached a record high in March, defying planned output cut. Refined copper production in March surged 8.7% yoy to 1.33 million metric tonnes, surpassing the record set in December.
- NYMEX natural gas futures declined amid weaker demand expectations over the next two weeks, with gas flows to liquefied natural gas export facilities anticipated to decrease due to the seasonal spring maintenance period.
