DBT Bureau
Pune, 26 August 2026
Precious metals and industrial commodities traded mixed on Wednesday as a stronger U.S. dollar and profit-taking pressured gold and silver, while investors remained cautious ahead of key U.S. economic data and Federal Reserve Chairman Kevin Warsh’s remarks at Jackson Hole. Rising U.S. debt, easing inflation, renewed Iran tensions and shifting supply concerns continued to shape global market sentiment, with copper and zinc holding near elevated levels while crude oil and aluminium faced pressure.
- Precious metals came under pressure, with spot gold easing from a more than three-month high and spot silver falling approximately 1.5%. Profit taking activity and a stronger U.S. dollar weighed on prices as market participants turned cautious ahead of important U.S. economic releases and comments from Federal Reserve Chairman Kevin Warsh at the Jackson Hole meeting.
- U.S. Dollar index, a gauge that measures greenback against a basket of six currency rivals, traded near 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.
- Geopolitical tensions escalated after the U.S. urged countries to reduce their economic engagement with Iran or face secondary sanctions. In response, Iran pledged to retaliate against the measures, increasing uncertainty in global markets and reinforcing risk-off sentiment among investors.
- Crude oil prices declined to a one-week low despite the latest U.S. sanctions threat against Iran, as the economic measures as less disruptive to global oil supplies compared to a potential military escalation.
- Copper prices on both the LME and MCX remained near recent highs, supported by ongoing concerns over tightening supply conditions. However, gains were limited after nearly 20,000 tonnes of copper were added to LME warehouses last week, following substantial deliveries into exchange-monitored storage facilities.
- LME zinc climbed to its highest level since June 2022, while MCX zinc futures surged to a record high, as rising stockpiles in China, the world’s largest metals consumer, heightened concerns about supply shortages in other regions and fueled speculative buying.
- Aluminium inventories in LME warehouses fell to multi-decade low of around 250000 metric tonnes.
Source: Geojit Investments Limited
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