A Sudden Twist Sends Gold Soaring & Oil Into Wild Swings, Here's What Shook Global Commodity Markets In Just One Week?

Mumbai: The global commodity market saw massive ups and downs within just one week due to fast-changing geopolitical events. From failed talks between the US and Iran in Islamabad to a temporary ceasefire and reopening of the Strait of Hormuz, markets reacted sharply across asset classes.

US Dollar Weakens, Equity Markets Rally

The US Dollar Index fell for the third straight week, closing at 97.6 — a seven-week low. Improved risk sentiment after the temporary easing of tensions supported global equities.

On Dow Jones Industrial Average, prices rose 3.2 percent, while the S&P 500 surged 4.5 percent to cross 7,100 for the first time. The Nasdaq Composite jumped 6.8 percent.

However, cautious comments from Federal Reserve officials helped limit the dollar’s fall, as uncertainty around oil prices and geopolitical risks remains high.

Gold and Silver Extend Rally

Precious metals continued their upward trend for the fourth consecutive week. Gold prices touched USD 4,900 per ounce before settling near USD 4,825 due to profit booking.

Silver surged over 7 percent to around USD 82 per ounce, close to its recent highs. The rally was mainly driven by a weaker dollar and hopes of stability in geopolitical tensions, including continued ceasefire signals in the Middle East.

Base Metals Also Gain

Industrial metals also saw gains. Copper rose nearly 3 percent to around USD 13,347 per tonne, reaching a two-month high. Improved global sentiment and expectations of stable demand supported prices.

MCX Gold Outlook

In India, MCX gold futures are showing a mild upward trend but are still below a key falling trendline. A breakout above recent highs could confirm stronger bullish momentum.

Immediate resistance is seen at ₹1,57,500 per 10 grams, followed by ₹1,59,200. On the downside, support lies at ₹1,51,200, and a fall below this could drag prices to ₹1,50,300.

Crude Oil Sees Wild Swings

Crude oil was the most volatile asset during the week. Prices of WTI and Brent Crude Oil initially surged above $105 and $103 per barrel due to supply concerns.

Later, prices crashed to $80.6 (WTI) and $86 (Brent) after Iran briefly reopened the Strait of Hormuz, easing supply fears.

However, tensions rose again as Iran reimposed restrictions, and incidents involving tankers created fresh uncertainty. The situation remains unclear, and oil prices may continue to remain volatile.