Commodity markets remained volatile Thursday as investors continued to navigate heightened geopolitical tensions in the Middle East, evolving supply expectations, and the outlook for interest rates. Energy prices extended recent gains on concerns over shipping disruptions through the Strait of Hormuz, while precious metals recovered modestly in early trading after recent weakness. Investors are also focused on today’s U.S. natural gas storage report and upcoming global energy data releases for further insight into commodity supply and demand trends.
Oil & Gas
Energy markets continued to trade higher as conflict between the U.S. and Iran remained front and center. Reports of additional military strikes and sharply reduced shipping traffic through the Strait of Hormuz fueled concerns that global crude supplies could remain constrained in the near term. While some analysts, including Goldman Sachs, believe oil flows could normalize by the end of July if diplomatic negotiations resume, uncertainty surrounding sanctions and maritime security continues to support higher prices.
Natural gas prices edged lower as traders awaited the latest U.S. storage report, although forecasts for above-normal temperatures across much of the country continue to underpin summer demand. Meanwhile, global LNG markets remain active, with new infrastructure investments and continued export demand supporting the longer-term outlook despite near-term price volatility.
Metals & Mining
Metals markets showed signs of stabilization following recent selling pressure, with gold, silver, and copper all moving higher in early trading as investors sought safe-haven exposure amid ongoing geopolitical uncertainty. At the same time, stronger global demand for critical minerals continued to shape the long-term outlook. Chile reported a sharp increase in lithium export revenue during the first half of the year, while China’s largest solar manufacturer announced plans to replace silver with copper in solar cells as elevated silver prices encourage manufacturers to seek lower-cost alternatives.
Within the mining sector, companies continued to report strong second-quarter production results and project updates across both precious and base metals. However, analysts remain cautious on near-term margins for gold producers as higher operating costs and recent fluctuations in precious metal prices may pressure quarterly earnings despite solid production growth.
Commodity markets continue to be driven primarily by geopolitical developments and their impact on global supply chains. Energy markets remain particularly sensitive to events in the Middle East, while metals investors are balancing safe-haven demand against expectations for higher interest rates and shifting industrial demand. Looking ahead, upcoming energy inventory reports, inflation data, and central bank commentary will likely remain key catalysts for commodity prices as markets assess both near-term risks and longer-term supply fundamentals.
Oil & Gas:
- Pricing
- WTI +0.7% to $74.03 (Aug)
- Brent +0.8% to $78.14 (Sept)
- Natural gas (0.6%) to $3.19 (Aug)
- RBOB +0.9% to $3.13 (Aug)
- ULSD (0.0%) to $3.66 (Aug)
Metals Snapshot:
- Gold +0.83% to $4116.3/oz, Monthly (5.66)%, YTD (5.18)%:
- Silver +1.4% to $59.36/oz, Monthly (13.45)%, YTD (15.92)%:
- Copper +2.04% to $6.232/lb, Monthly (1.86)%, YTD +9.68%:
- Aluminum +0.71% to $3141/mt, Monthly +0%, YTD +0%:
- Nickel +0% to $16160/mt, Monthly +0%, YTD +0%:
- Zinc (0.87)% to $3529/mt, Monthly +0%, YTD +0%:
- VanEck Gold Miners ETF +1.24% to $74.44, Monthly (6.53)%, YTD (14.27)%:
- VanEck Junior Gold Miners ETF +1.10% to $96.65, Monthly (5.91)%, YTD (15.98)%:
- US Dollar +0.01% to $101.003, Monthly +0.96%, YTD +2.73%:
- CBOE Volatility Index +0.41% to $18, Monthly (3.95)%, YTD +8.88%:
