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Bullion – Spot gold and silver extended Monday’s sharp rally on Tuesday, hitting one-week highs amid heightened geopolitical and policy uncertainty. Gold advanced over 1% to around $4,495, supported by safe-haven inflows after the U.S. capture of Venezuela’s president intensified global tensions. Meanwhile, Silver surged more than 6% to settle above $81, reflecting not short-term speculation but a growing structural supply-demand imbalance amid constrained mine output, and rising industrial usage at a time when supply remains limited. Moreover, softer US Services PMI revised down to 52.5 from 52.9 and an 18% probability of a January rate cut balanced geopolitical risks. Today Gold eased below $4,460 after earlier surpassing $4,500, as traders pivot from geopolitical tensions to US economic indicators, with focus on upcoming ADP, ISM Services, and JOLTS data.

Crude Oil – WTI crude oil prices reversed all the gains from the previous session and slipped below $57 per barrel in volatile trade on Tuesday, as markets digested heightened geopolitical risks in Venezuela and the Middle East amid lingering oversupply concerns. Today, oil prices extended losses to a three-week low of $55.76 per barrel after President Trump said Venezuela’s interim authorities would give up 30–50 million barrels of “high-quality, sanctioned oil” to the US. This eased supply disruption concerns and raised the prospect of additional barrels entering an already oversupplied market. Meanwhile, the latest API report was mixed. US crude oil inventories fell by 2.8 million barrels in the week ending January 2, while gasoline and distillate stocks rose sharply by 4.4 million barrels and 4.9 million barrels, respectively

Natural Gas – NYMEX natural gas futures continued to weaken, falling below $3.3 per mmBtu amid warmer weather forecasts through mid-January and a decline in LNG export flows.

Base metals – Base metals rallied strongly on the LME, with copper extending its momentum to new highs above $13,230/ton on tightening supply expectations. Tariff uncertainty in the U.S. has continued to divert material into American warehouses, straining availability elsewhere and reinforcing bullish sentiment. Support has also come from resilient structural demand linked to electrification and digital infrastructure, alongside improving risk appetite amid expectations of lower U.S. interest rates. Nickel joined the rally, advancing to multi-year highs after Indonesia signaled deeper output cuts to address oversupply concerns. Elevated LME stocks and persistent surplus forecasts suggest nickel’s fundamentals are less tight than copper, as base metals take a breather in today's session, with copper and zinc easing even as broader supply-tightness expectations kept sentiment firm.

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