DBT Bureau
Pune, 11 August 2026
Precious metals eased after touching a two-month high earlier in the session, as rising crude oil prices rekindled inflation concerns and clouded expectations for the Federal Reserve’s rate path. Earlier gains had been driven by weaker-than-expected U.S. employment data, which reduced expectations of further Fed rate hikes, while investors remained focused on upcoming U.S. inflation data for additional clues on the central bank’s policy outlook.
Spot gold tested USD 4,434 per troy ounce before easing, while spot silver hit above USD 66 per troy ounce before shedding more than 1%.
The FOMC kept its interest rate unchanged at 3.50%–3.75% in its July meeting, while Fed Chair Kevin Warsh reaffirmed the central bank’s steadfast commitment to bringing inflation under control.
On the geopolitical front, Iran stated that it is close to finalizing an agreement with Oman on new shipping routes through the Strait of Hormuz, but stressed that the U.S. must first meet key conditions — including lifting sanctions, ending military threats, and providing compensation — before the vital waterway can be reopened. U.S. President Donald Trump responded to Iran’s conditions for a peace agreement by demanding compensation for war-related damages, a move that has complicated efforts to reopen the Strait of Hormuz.
Against this backdrop of renewed uncertainty, NYMEX crude oil rebounded above USD 84 per barrel, while ICE Brent climbed to USD 90 per barrel.
Base Metals
Copper prices on the LME and MCX platforms hovered higher, with London copper remaining close to a six-month peak after the Democratic Republic of Congo imposed a ban on copper and cobalt concentrate exports, raising supply concerns.
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.
London zinc futures traded near four-year highs, with zinc inventories in LME-registered warehouses remaining at multi-year lows after declining sharply during the first half of the year — highlighting persistent tightness in the physical market.
Source: Geojit Investments Limited
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