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Bullion – Spot gold closed marginally lower at $5,176 per ounce, while silver declined 3% yesterday to close below $86, pressured by a stronger U.S. dollar. The dollar climbed to 99.3 as escalating tensions in the West Asia supported safe-haven demand for the U.S. currency. While, surging oil prices heightened inflation concerns, reducing expectations for near-term interest rate cuts by the Fed. Although gold typically benefits from geopolitical risks and inflationary pressures, elevated U.S. Treasury yields limited upside momentum. The latest U.S. inflation data was broadly in line with expectations, with CPI steady at 2.4% y/y in February and core inflation at 2.5%. Meanwhile, the U.S. 10-year Treasury yield climbed to around 4.22% as investors reacted to higher gasoline prices. Today, Gold is trading near $5,150 after rebounding from $5,125, as traders eye jobs and PCE numbers for fresh policy cues.

Crude Oil – WTI crude oil surged to $89/bbl yesterday, as markets judged that the 400 million barrel release announced by the IEA would be insufficient to offset potential supply disruptions stemming from the Iran war. While the move marks the largest coordinated release on record, volume would cover only about 20 days of the 20 million bpd of oil flows that could be disrupted if the Strait of Hormuz were closed. Maritime activity through the Strait has already slowed materially after several commercial vessels were struck by projectiles this week. Oil prices extended gains to around $96/bbl today as attacks on energy infrastructure intensified across West Asia, raising concerns about broader disruptions to regional export infrastructure. Salalah, largest port in Oman, was hit by drones for the second time, prompting authorities to evacuate vessels from Mina Al Fahal as a precaution while, Iraq halted operations at several oil terminals after tankers were targeted.

Natural Gas – NYMEX Gas Futures surged 6% to $3.22/mmBtu yesterday, in line with the rally in global energy prices amid reports that Iran may have deployed naval mines in the Strait of Hormuz.

Base metals – Base metals finished Tuesday on a mixed footing, with aluminium leading gains, advancing more than 1.5% to settle near $3,547/ton, while copper remained relatively steady around $13,042/ton. The broader complex continues to face pressure as elevated oil prices and a stronger dollar raise concerns over slowing global growth. Copper eased after two sessions of gains, although dip-buying from Chinese fabricators and stronger downstream demand from construction and renewable sectors provided some support. In contrast, aluminium remains supported by supply disruptions linked to the Middle East conflict. Looking ahead, base metals may trade mixed with a mild positive bias, supported by supply risks, though upside could be limited by macro uncertainties and dollar strength

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