Gold, Crude Oil, Base Metals & Natural Gas Market Updates
Gold slips as profit-taking offsets Fed rate cut bets after surprise PPI decline, WTI crude oil pulls back amid output concerns
Gold retreated to trade near $3,620 per ounce, erasing earlier gains after a surprise drop in US producer prices bolstered expectations for Federal Reserve rate cuts. Bullion slipped as much as 0.5% to around $3,623 an ounce, about $50 below this week’s peak. Markets now see a quarter-point cut at the Sept. 16–17 Fed meeting as certain, with potential for further easing by year-end amid weak labor data. Lower borrowing costs typically support gold, which has surged nearly 40% this year, fueled by ETF inflows, central bank buying, and geopolitical risks. Analysts caution signs of fatigue, with overbought conditions tempering momentum.
At 2:09 p.m. in Singapore, gold traded at $3,631.33, while silver hovered near $41, and platinum and palladium declined.
WTI Crude Oil prices eased to $63.10 per barrel after recent gains as rising supply concerns outweighed geopolitical tensions. The International Energy Agency projected a larger record surplus in 2026, with OPEC+ restoring output and rival supplies expanding. Brent held above $67 a barrel, still up over 2.5% for the week, but retreated after a three-day rally fueled by Middle East and European tensions. A social media post by US President Donald Trump, questioning Israel’s attack on Doha and Russia’s incursion into Polish airspace, briefly spurred futures higher as shorts covered. Traders remain focused on the tug-of-war between supply growth and geopolitical risk, keeping prices in a $65–$70 range since August. Meanwhile, US crude and petroleum inventories posted their largest increase since
summer 2023, threatening additional downside pressure.
Base metals are trading on a mixed note on Thursday, with aluminium emerging as the sole gainer, rising nearly 1% on both the LME and MCX. Copper briefly crossed the $10,000/ton mark before easing back, pressured by a stronger US dollar that dampened buying interest. While the firmer dollar weighed on sentiment, supply-side concerns offered some support, with operations at Indonesia’s mine temporarily suspended following an underground incident. Traders also monitored developments in Panama, where talks on restarting the Cobre Panama mine are expected later this year. Meanwhile, signs of easing deflationary pressures in China’s industrial economy continue to provide a tentative floor for demand expectations.
European natural gas prices hovered near a two-week high around €33/MWh as traders monitored potential EU and US sanctions against Russia following recent airspace violations in Poland. The bloc pledged to “significantly” ramp up measures, raising concerns over tighter energy supplies ahead of winter. Geopolitical risks also resurfaced, with Israel striking Hamas in Qatar, a key LNG exporter. Still, Europe’s gas storage remains nearly 80% full, meeting mandatory targets, while LNG imports have strengthened after an August dip, tempering price gains. Industry executives see no immediate supply security risks, though Europe remains exposed to global competition for LNG and potential volatility should Russian flows tighten.
- Market Analysis by Nagaraj Shetti
- Analysis by Kotak Securities
- Market Analysis by HDFC Securities
- Technical Analysis by Kotak Securities
- Technical Analysis by Samco Securities
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