Chanakya

Gold is strengthening, crude oil is cooling

Kaynat Chainwala, Associate Vice President, Commodity Research, Kotak Securities

Commodity outlook ๐Ÿ•— Last Update: 6 April 2026, 4.00 PM

by Riteshkumar Sahu (riteshkumar.sahu@kotak.com), Saait Sawant Dessai

Commodity Market Insight Today

The commodity market is showing a clear split today โ€” gold is strengthening, crude oil is cooling, base metals are stabilising, while natural gas remains under pressure. The major driver is the shift from war premium to macro interpretation, as traders are now focusing more on US dollar movement, Fed expectations, global growth and energy risk repricing.

For traders and investors, this means the market is moving from panic pricing to selective opportunity pricing.


Gold Outlook Today

Gold is trading with a firm bullish undertone, extending its recent rebound and moving above the $4,720 per ounce zone. The key support for gold today is coming from a weaker US dollar and growing belief that the Federal Reserve may not have much room for further aggressive tightening.

At the same time, some of the geopolitical fear premium is fading, but gold is still finding support from:

  • central bank buying
  • global macro uncertainty
  • rate cut expectations later ahead

Chanakya View on Gold

Gold is no longer rising only because of fear.
It is now being supported by macro positioning, which is a healthier signal for the medium term.

๐Ÿ‘‰ Bias: Cautiously Bullish
๐Ÿ‘‰ Key trigger: Dollar weakness and softer rate expectations
๐Ÿ‘‰ Risk: If inflation spikes again or dollar rebounds sharply, upside may slow


Silver Outlook Today

Silver remains weaker than gold and is still in correction-recovery mode after a very sharp decline in March. This shows that silver is currently behaving more like a high-beta macro metal rather than a pure safe-haven asset.

That means silver may remain more volatile than gold in the near term.

Chanakya View on Silver

Silver can recover, but conviction is still not as strong as gold.
It needs stronger industrial demand confidence and a more stable macro backdrop.

๐Ÿ‘‰ Bias: Volatile with recovery attempts
๐Ÿ‘‰ Key takeaway: Silver is still rebuilding after a steep correction


Crude Oil Outlook Today

WTI crude is trading lower near $100 per barrel, and Brent is also under mild pressure as the market is pricing in the possibility of Middle East de-escalation. That has reduced some immediate supply panic.

However, traders should not mistake this decline for a complete trend reversal.

Oil is still structurally supported because:

  • supply disruptions remain unresolved
  • Strait of Hormuz uncertainty is still alive
  • IEA has already highlighted severe disruption risks
  • US crude inventory build expectations may cap upside temporarily

Chanakya View on Crude Oil

Crude is cooling, but not weak.
This is currently a premium correction, not yet a bearish collapse.

๐Ÿ‘‰ Bias: Volatile with support on dips
๐Ÿ‘‰ Near-term view: Lower if de-escalation continues, but downside may remain limited
๐Ÿ‘‰ Risk trigger: Any fresh supply shock can again spike prices sharply


Base Metals Outlook Today

Base metals are trading on a mixed but improving tone, with copper showing relative strength. Copper is getting support from:

  • improved global sentiment
  • better China demand indicators
  • lower output concerns from Chile and some mining operations

This is important because copper often acts as a global growth signal. A stable or rising copper price usually indicates that traders are not fully pricing in a global slowdown.

Still, upside may not become aggressive immediately because:

  • exchange inventories remain elevated
  • geopolitical risks are still not fully behind us
  • industrial recovery confidence is still selective

Chanakya View on Copper & Base Metals

Copper is showing the best relative setup among industrial commodities right now.
It is not in breakout mode yet, but the tone has clearly improved.

๐Ÿ‘‰ Bias: Cautiously Constructive
๐Ÿ‘‰ Key takeaway: Copper strength is a positive sign for industrial sentiment


Natural Gas Outlook Today

Natural gas is under pressure near $2.86/MMBtu, mainly because the market is now entering the spring shoulder season, when heating demand typically fades.

The biggest bearish factor right now is:

  • warmer-than-normal weather
  • reduced heating consumption
  • rising storage injection expectations

But there is still some support underneath from:

  • steady LNG feedgas demand
  • broader supply disruption concerns linked to energy routes

Chanakya View on Natural Gas

Natural gas remains weather-sensitive and currently lacks a strong bullish trigger.
So even though downside may not collapse, near-term momentum still looks soft.

๐Ÿ‘‰ Bias: Mildly Bearish
๐Ÿ‘‰ Key takeaway: Demand weakness is dominating, but LNG support is limiting deeper downside


What This Means for Commodity Traders

Right now, the commodity market is rotating into a more selective trend environment:

  • Gold = stronger safe-macro trade
  • Silver = recovery attempt, but unstable
  • Crude Oil = geopolitical premium cooling, not broken
  • Copper = improving growth sentiment signal
  • Natural Gas = weather-driven softness

This means traders should now shift from headline chasing to asset-specific setups.


Final Commodity Market View

The broader commodity structure is no longer one-way panic driven.
Instead, the market is now asking:

Which commodities still have strong fundamentals after the geopolitical premium cools off?

Right now, the answer looks like:

  • Gold remains the strongest defensive setup
  • Copper is showing improving constructive signs
  • Crude remains volatile but supported
  • Natural Gas is still the weakest near-term setup

๐Ÿ‘‰ Chanakya Commodity Bias Today:
Bullish on Gold | Constructive on Copper | Volatile on Crude | Soft on Natural Gas

COMEX Gold and Silver slipped below $4,630/oz and $72/oz earlier in the session, extending losses from last week as Trump’s renewed ultimatum to Iran, coupled with Tehran’s rejection of the U.S. 48-hour ceasefire proposal, kept the risk of elevated energy prices high. Also, stronger-than-expected U.S. data, including March nonfarm payrolls rising 178,000, the strongest job growth since late 2024, alongside strong private payrolls, firm ISM Manufacturing PMI and retail sales, reinforced the higher-for-longer interest rate narrative, reducing expectations of near-term Fed rate cuts. However, precious metals have since recovered sharply, with gold moving above $4,730/oz and silver to around $73.3/oz, amid ceasefire push. Geopolitics remains the primary driver this week, with fluctuating developments around the Strait of Hormuz likely to overshadow scheduled macro releases. While FOMC minutes, U.S. Core PCE, and CPI will be closely watched, their market impact may remain limited unless the geopolitical backdrop stabilises meaningfully.

Todayโ€™s Gold & crude quote by Kaynat Chainwala, AVP Commodity Research, Kotak Securities:

WTI and Brent crude have eased modestly from recent highs of $115/bbl and $111/bbl, respectively, and are currently trading below $112/bbl and $109/bbl. Markets continue to balance a fragile diplomatic push for a ceasefire against a firm U.S. stance on Iran. A significant risk premium remains embedded in prices, with the Strait of Hormuz effectively closed to most tanker traffic, pushing dated Brent above $140 and reflecting tight physical supply conditions. Reports indicate that the U.S., Iran, and regional mediators are exploring a potential 45-day pause; however, skepticism persists as Iran has rejected U.S. demands, while Washington has warned of potential strikes on critical infrastructure if the strait is not reopened. With a scheduled Trump press conference on Monday and a self-imposed deadline at 8 p.m. ET on Tuesday, market volatility is expected to remain elevated. Any credible signs of de-escalation could trigger sharp pullbacks, whereas a breakdown in talks or further escalation may push Brent back toward $120, particularly as tight physical markets continue to support deep backwardation.


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