Commodity markets witnessed sharp volatility on Wednesday, May 27, as traders tracked fresh developments in the ongoing US-Iran conflict, movement around the Strait of Hormuz, and upcoming US inflation data.
Crude oil prices pulled back after surging nearly 4% in the previous session, while gold and silver traded higher amid safe-haven demand and a weaker US dollar. Natural gas prices also remained strong as supply concerns continued to dominate global energy markets.
Commodity prices today
| Commodity | Price | Change | % Change |
|---|---|---|---|
| Silver | 271,917 | +1,289 | +0.48% |
| Gold | 157,800 | +184 | +0.12% |
| Copper | 1,361.95 | +4.70 | +0.35% |
| Zinc | 368.15 | +0.65 | +0.18% |
| Crude Oil | 8,862 | -152 | -1.69% |
| Natural Gas | 289.1 | +12.9 | +4.67% |
Crude oil slips after recent rally
Brent crude futures fell 1.43% to around $98.16 per barrel, while US WTI crude declined 1.77% to $92.23 a barrel after traders booked profits following Tuesday’s sharp rally.
Oil prices had surged earlier after the US launched fresh strikes in Iran, hurting hopes of a quick agreement between Washington and Tehran to end the ongoing conflict and reopen the Strait of Hormuz.
Markets are now closely monitoring whether the strategic waterway, which handles a significant share of global oil and LNG shipments, will reopen in the coming weeks.
Gold and silver gain on safe-haven demand
Gold and silver prices moved higher as geopolitical tensions and a weaker US dollar supported bullion demand.
COMEX gold futures rose 0.34%, while silver outperformed with gains of more than 1.3%. Analysts said investors remain cautious ahead of the US Personal Consumption Expenditures (PCE) inflation data and comments from Federal Reserve officials later this week.
Market participants continue to weigh inflation risks, interest rate expectations and geopolitical uncertainty, all of which are influencing precious metal prices.
Natural gas remains volatile
European natural gas prices eased slightly after recent gains, but concerns over LNG supply disruptions through the Strait of Hormuz continued to support sentiment.
Natural gas prices in domestic markets jumped over 4%, reflecting fears of tighter global supply amid escalating geopolitical tensions.
Meanwhile, India also received a boost after reports emerged that a new natural gas-bearing zone was unlocked in Rajasthan’s Dandewada field.
Market outlook
Analysts expect commodities to remain highly volatile in the near term as investors react to geopolitical headlines, US inflation data, Federal Reserve commentary and developments around Iran and the Strait of Hormuz.
Gold and silver are expected to remain range-bound with a positive bias, while crude oil could continue witnessing sharp swings depending on geopolitical developments and progress in ceasefire negotiations.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Commodity market investments are subject to market risks. Always conduct your own research before making investment decisions.