Commodity markets remained under pressure as investors continued to digest a stronger U.S. dollar, expectations for higher interest rates, and easing geopolitical risks in the Middle East. Energy prices extended their recent decline as crude supply concerns faded, while precious metals weakened further as rising bond yields and a hawkish Federal Reserve outlook reduced demand for traditional safe-haven assets. Industrial metals, however, continue to benefit from long-term structural demand tied to electrification, artificial intelligence infrastructure, and energy transition investment, despite near-term volatility.
Oil & Gas
Oil prices continued to retreat as markets grew increasingly confident that Middle East crude exports would remain uninterrupted. Improving tanker traffic through the Strait of Hormuz, soft Chinese demand, and expectations for additional fuel exports from China weighed on crude prices, while investors also looked ahead to next week’s OPEC+ meeting. Natural gas moved modestly higher as warmer weather forecasts supported expectations for stronger summer cooling demand.
Crude oil has now largely given back the geopolitical premium that developed during the Iran conflict. Insurance costs for tankers transiting the Strait of Hormuz have fallen sharply, vessel traffic continues to improve, and Gulf-region production is recovering. While attacks on Russian energy infrastructure remain a source of uncertainty, markets are increasingly focused on slowing Chinese demand and the possibility of additional OPEC supply later this summer.
Natural gas prices rebounded modestly after recent weakness as forecasts pointed to above-normal temperatures across much of the eastern United States. Investors are now awaiting the latest EIA storage report for additional insight into supply conditions heading into the peak summer demand season.
Metals & Mining
Precious metals remained under pressure as investors continued to favor the U.S. dollar amid expectations for additional Federal Reserve tightening. Gold traded near seven-month lows while silver also weakened sharply. Industrial metals presented a more constructive picture, with copper gaining on continued optimism surrounding long-term demand from electrification, renewable energy, and artificial intelligence infrastructure.
Gold prices remained under pressure as a stronger U.S. dollar and higher interest-rate expectations continued to reduce demand for safe-haven assets. UBS maintained a neutral outlook on precious metals in the near term, while remaining constructive on industrial metals given tight supply conditions and favorable long-term demand trends. Preliminary industry data also showed global copper mine production declined 1.4% during the first four months of 2026, although refined copper production increased, resulting in a modest global surplus.
Mining companies continued to announce encouraging exploration and project development updates across gold, silver, and copper assets, highlighting that producers remain focused on expanding reserves and improving operational efficiency despite near-term commodity price weakness. Investors also remain encouraged by the longer-term outlook for copper as AI-related power demand and electrification continue to support structural consumption growth.
Commodity markets continue to transition away from geopolitical headlines and back toward macroeconomic fundamentals. Energy prices are adjusting to improving global supply conditions, while precious metals remain challenged by higher interest-rate expectations and dollar strength. At the same time, industrial metals continue to benefit from compelling long-term supply-and-demand dynamics, even as short-term volatility persists.
Looking ahead, investors will focus on key U.S. economic releases—including GDP revisions, inflation data, durable goods orders, jobless claims, and the EIA natural gas storage report—for further insight into the outlook for economic growth, Federal Reserve policy, and commodity demand through the second half of the year.
Metals Snapshot:
- Gold (0.21)% to $4000.5/oz, Monthly (11.56)%, YTD (7.85)%:
- Silver (1.51)% to $57.21/oz, Monthly (24.92)%, YTD (18.97)%:
- Copper +1.4% to $6.032/lb, Monthly (5.44)%, YTD +6.16%:
- Aluminum (3.48)% to $3150/mt, Monthly +0%, YTD +0%:
- Nickel (2.89)% to $16610/mt, Monthly +0%, YTD +0%:
- Zinc (1.88)% to $3437/mt, Monthly +0%, YTD +0%:
- VanEck Gold Miners ETF (0.24)% to $74.40, Monthly (12.27)%, YTD (13.03)%:
- VanEck Junior Gold Miners ETF +0.02% to $96.10, Monthly (13.92)%, YTD (15.56)%:
- US Dollar +0.1% to $101.713, Monthly +2.49%, YTD +3.45%:
- CBOE Volatility Index (3.5)% to $18.75, Monthly (4.01)%, YTD +13.41%:
Energy Pre-Market
Oil & Gas:
- Pricing
- WTI (0.8%) to $69.78 (Aug)
- Brent (0.9%) to $73.08 (Aug)
- Natural gas +1.4% to $3.265 (July)
- RBOB +0.6% to $2.900 (July)
- ULSD (0.8%) to $3.1351 (July)
