Commodity markets were mixed today as investors weighed easing geopolitical tensions in the Middle East against ongoing concerns about global growth and commodity demand. Energy prices pulled back following reports of a ceasefire between Israel and Lebanon, while precious metals benefited from a weaker U.S. dollar and continued investor demand. Markets are now focused on upcoming U.S. employment data and this weekend’s OPEC+ meeting for further direction.
Oil & Gas:
Energy markets eased after a strong rally earlier this week. Crude oil prices moved lower as ceasefire developments reduced immediate supply disruption concerns, though prices remain supported by tightening inventories and ongoing geopolitical uncertainty. U.S. crude stockpiles remain near multi-decade lows following six consecutive weekly draws, while Russian production has declined due to refinery maintenance, potentially adding further supply constraints.
Natural gas prices edged higher ahead of the latest storage report, supported by warmer weather forecasts and expectations for increased summer cooling demand. Investors remain focused on upcoming inventory data, rig counts, and Sunday’s OPEC+ meeting, which could influence production levels and energy markets in the weeks ahead.
Metals & Mining:
Metals markets were mixed, with gold advancing on a weaker U.S. dollar and continued demand for defensive assets. Consultancy Metals Focus expects investment demand to surpass jewelry demand as the largest source of gold consumption this year and forecasts a renewed gold bull market in the second half of 2026.
Copper remained near multi-year highs despite concerns about slowing Chinese industrial demand, while iron ore prices fell sharply following weaker Chinese steel consumption data. Exploration and development activity across gold, silver, uranium, and copper projects remained strong, highlighting continued confidence in the sector’s long-term outlook.
Today’s trading reflected a shift from geopolitical headlines toward economic fundamentals. While easing Middle East tensions pressured oil prices, underlying supply constraints continue to support the energy outlook. Precious metals remained resilient amid a weaker dollar and ongoing investor demand. Looking ahead, Friday’s U.S. employment report and this weekend’s OPEC+ meeting are expected to be key catalysts for commodity markets and broader investor sentiment.
Metals & Mining Pre Market
Synopsis:
- Daily update: Following yesterday’s lower close, futures signal a mixed
start this morning with the S&P (0.5%) and the Dow +0.6% thus far in the
pre-market.
- Gold prices are trading higher today largely driven by a weakness in US
dollar and oil prices as investors monitor the progress surrounding the
Middle East peace talks.
- Consultancy Metals Focus stated that physical investment is expected to
replace jewellery as the largest component of gold demand for the first
time this year citing double-digit losses in jewellery amid high prices, as
per Reuters. The consultancy expects gold to resume its bull run in
H2/2026.
- Iron-ore prices recorded their biggest daily losses in nearly two months on
rising concerns around China's demand, as per Reuters. China’s apparent
consumption for five major steel products declined by (3.1%) w/w as of
June 4, as per Mysteel data.
- In terms of equity research, Wells Fargo Securities downgraded
Commercial Metals to equal weight from overweight.
- Pre-Market: B +1.7%, NEM +0.8%, FCX (0.9%)
Metals Snapshot:
- Gold +1.09% to $4515.5/oz, Monthly (2.78)%, YTD +4.02%:
- Silver +0.57% to $74.115/oz, Monthly (3.03)%, YTD +4.97%:
- Copper +0.15% to $6.517/lb, Monthly +8.9%, YTD +14.7%:
- Aluminum (1.5)% to $3797/mt, Monthly +0%, YTD +0%:
- Nickel (1.88)% to $18810/mt, Monthly +0%, YTD +0%:
- Zinc +0.35% to $3624.5/mt, Monthly +0%, YTD +0%:
- VanEck Gold Miners ETF +1.66% to $86.41, Monthly (2.42)%, YTD (0.9)%:
- VanEck Junior Gold Miners ETF +1.60% to $112.65, Monthly (3.9)%, YTD (2.55)%:
- US Dollar (0.32)% to $99.209, Monthly +1.07%, YTD +0.9%:
- CBOE Volatility Index +1.96% to $17.95, Monthly (8.85)%, YTD +8.57%
Energy Pre-Market
Oil & Gas:
- Pricing
- WTI (2.8%) to $93.32 (July)
- Brent (2.9%) to $95.00 (Aug)
- Natural gas +1.2% to $3.252 (July)
- RBOB (2.9%) to $3.040 (Aug)
- ULSD (1.8%) to $3.779 (Aug)