Global commodity markets are moving in a cautious and data-driven environment as traders react to strong US economic data, mixed demand signals, and ongoing supply concerns. Precious metals like gold and silver have seen profit booking, while crude oil and base metals continue to respond to geopolitical headlines and weak spot demand.

In this commodity market update, we break down the latest movement in gold, silver, crude oil, and LME base metals, and explain what market participants should watch next

Commodity Market Overview: Caution Before Key Data

The overall commodity market sentiment remains slightly cautious. Strong US economic indicators, especially labour-related data, have reduced expectations of aggressive interest rate cuts by the Federal Reserve. As a result, traders are avoiding heavy positions and reacting quickly to fresh data releases.

Markets are currently focused on:

• US unemployment claims
• UK GDP data
• US existing home sales
• Upcoming macro and inventory data

This environment favors short-term volatility rather than strong trending moves.

Gold Market Update: Support Holding After Pullback

Spot gold witnessed profit booking and slipped below the $5,060 per ounce level. The decline came after strong US jobs data, which reduced hopes of an early Federal Reserve rate cut.

Despite the pullback, gold is still showing resilience. Prices are holding above the $5,050 zone, and the broader structure remains stable as long as key support levels stay intact.

Key factors influencing gold prices:

• Strong US labour data limiting dovish Fed expectations
• Ongoing geopolitical uncertainty
• Safe-haven demand during volatile market conditions

Gold continues to attract long-term interest, especially during periods of macroeconomic uncertainty, even though short-term corrections are part of the process.

Silver Market Update: Volatility With Underlying Strength

Silver prices fell more than gold in today’s session. Prices dropped over 2% and moved close to the $82 per ounce level.

The main reason was strong US jobs data. This data pushed the dollar higher and put pressure on metals.

Still, silver recovered from lower levels. Buyers showed interest near support. Unlike gold, silver also has strong industrial use. This helps limit big downside moves.

What is affecting silver prices:

• Strong US jobs data

• Industrial demand outlook

• ETF buying and selling

Silver remains volatile. Many traders are watching price dips closely.

Crude Oil Market Update: Gains Limited by Inventory Data

WTI crude oil initially moved higher and tested the $65 per barrel mark, supported by rising geopolitical tensions and concerns around US–Iran relations. However, the upside did not sustain for long.

A major reason for the pullback was US EIA data, which showed a sharp rise in crude oil inventories—nearly 8.5 million barrels. This increase signaled supply pressure and acted as a bearish factor for prices.

Key drivers for crude oil:

• Geopolitical risk premium
• US crude inventory build-up
• Demand uncertainty

As long as inventory data remains weak, crude oil rallies may face selling pressure at higher levels.

LME Base Metals Update: Copper Faces Demand Challenges

LME base metals traded with mild strength, supported by selective buying, especially in copper. However, overall momentum remains limited.

The biggest concern for base metals is weak spot demand, particularly from China. Buying interest from Chinese markets remains subdued, which is keeping prices range-bound despite occasional short-covering rallies.

Factors impacting base metals:

• Weak spot demand from China
• Buyers staying on the sidelines
• Lack of strong volume participation

Until demand improves, base metals are likely to remain volatile with limited upside.

Key Economic Data to Watch Next

Market participants are now closely tracking the following data points:

• UK GDP data
• US unemployment claims
• US existing home sales

These indicators will provide clarity on economic momentum and influence expectations around future monetary policy decisions. Any surprise in data can lead to sharp intraday moves across commodities.

What This Means for Traders and Investors

The current commodity market setup is:

• Data-sensitive
• Volatile in the short term
• Best suited for disciplined trading

Instead of aggressive positioning, traders should focus on levels, data releases, and risk management. Short-term moves can be sharp, but sustainability depends heavily on macro confirmation.

For traders looking for structured insights, daily levels, and real-time updates across commodities, following a disciplined approach becomes essential.

You can explore our Commodity Pulse service here:
👉 https://indianmarketview.com/commodity-pulse/

Final Thoughts

Gold and silver are consolidating after recent volatility, crude oil is struggling to sustain gains due to rising inventories, and base metals remain range-bound amid weak demand signals. With multiple economic data points lined up, the market remains highly reactive to headlines.

In such conditions, staying informed, avoiding emotional trades, and following a clear strategy can make a significant difference.

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