DBT Bureau
Pune, 21 August 2026
Precious metals eased after a strong previous-session rally, with gold and silver retreating from multi-month highs as markets assessed movements in the U.S. dollar and growing U.S. fiscal concerns. Meanwhile, crude oil prices extended gains amid stalled Middle East diplomacy, while copper weakened on rising warehouse inventories. Aluminium remained supported by tightening stocks, and U.S. natural gas production and consumption are expected to reach record levels in 2026.
- Precious metals eased after posting sharp gains in the previous session. Gold and silver prices in the London spot market had rallied sharply as the U.S. dollar weakened against a basket of major currencies, following an unexpected U.S. Treasury announcement aimed at supporting liquidity in longduration bonds.
- Spot gold retreated after reaching a more than two-month high of USD 4525 per troy ounce, while spot silver climbed to an almost two-month peak of USD 67.30 per troy ounce before giving up some of its gains.
- U.S. Dollar index, a gauge that measures greenback against a basket of six currency rivals, shed more than 1% this week, and hovered below 99 mark.
- Total U.S. debt has topped USD40 trillion for the first time, drawing fresh warnings that a fiscal crisis is brewing.
- The U.S. inflation rate slowed to 3.4% annually in July from 3.5% in June, indicating a modest easing in price pressures.
- Crude oil prices extended gains as stalled diplomatic efforts to ease Middle East tensions provided support. NYMEX crude surged to USD88 per barrel while ICE Brent hit USD94 per barrel today.
- Copper prices on both the LME and MCX declined after a sharp increase in London Metal Exchange warehouse inventories eased concerns over tight supply that had previously supported prices. According to LME data, total copper stocks rose by nearly 20,000 tonnes as substantial deliveries were made to exchange warehouses during the week.
- China’s refined copper production in July rose 1.3% yoy to 1.29 million metric tonnes.
- Aluminium inventories in LME warehouses fell to multi-decade low of around 250000 metric tonnes as supply disruptions in the conflict-affected Middle East prompted consumers to draw down stocks to secure metal supplies.
- U.S. natural gas production and consumption are expected to reach record levels in 2026, according to the Energy Information Administration. The EIA forecasts dry gas output to increase from a record 107.6 billion cubic feet per day in 2025 to 111.2 bcfd in 2026, before rising further to 116.0 bcfd in 2027.
Source: Geojit Investments Limited
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