DBT Bureau
Pune, 16 May 2026
Global commodities markets remained volatile amid rising geopolitical tensions, inflationary pressures, and tightening energy supplies, with precious metals weakening and crude oil gaining further momentum, as per Geojit Investments report.
- Precious metals weakened as oil driven inflationary pressures reinforced expectations of a more hawkish monetary stance, while the U.S. Senate’s approval of Kevin Warsh as Federal Reserve Chair added uncertainty over the future policy path, prompting caution among investors.
- U.S. inflation number from April reinforced the likelihood of a prolonged higher for longer interest rate environment. U.S. inflation rose 3.8% annually, on supply disruptions from U.S.–Iran tensions and transit restrictions, which are pushing up consumer goods prices.
- U.S. President Donald Trump and China’s Xi Jinping agreed in Beijing on the need to keep the Strait of Hormuz open, underscoring shared concerns over disruptions to global energy supplies. However, their talks highlighted ongoing tensions as progress toward resolving the Iran conflict remains stalled.
- India has raised import tariffs on gold and silver to 15% from 6%, as part of efforts to curb overseas purchases of the metals and ease pressure on the country’s foreign exchange reserves.
- International Energy Agency said that the global oil supply is expected to fall short of demand this year, as the Iran conflict disrupts Middle East production and tightens market balances.
- Crude oil prices rose as increasing U.S. pressure on Iran raised concerns over stalled peace efforts and ongoing disruptions around the Strait of Hormuz.
- Russia’s crude oil production declined by 460,000 barrels per day in April from the same month a year ago to around 8.8 million bpd.
- A Chinese supertanker carrying two million barrels of Iraqi crude sailed through the Strait of Hormuz on Wednesday after being stranded in the Gulf for more than two months due to the U.S.-Iran war.
- Copper output at Chile’s state owned Codelco declined 9.98% yoy in March to 110,900 tonnes. Production at Escondida, the world’s largest copper mine, dropped 15.75% to 101,600 tonnes, while Collahuasi, operated by Glencore and Anglo American, saw output fall 10.80% to 31,400 tonnes.
- China’s producer prices rose 2.8% year-on-year in April, while consumer inflation also exceeded expectations, rising 1.2% annually, driven.
