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Bullion – Spot gold and silver snapped a four-session rally on Tuesday, retreating over 1% as a modest U.S. dollar rebound triggered profit-taking. Gold settled below $5,150 per ounce, while silver eased toward $87. However, downside momentum remained contained amid China’s reopening, with expectations of improved physical demand. Geopolitical tensions also cushioned losses as U.S. could consider targeted strikes on Iran, though the White House reiterated diplomacy remains the preferred path. Tehran signaled willingness to advance negotiations, with a third round of talks scheduled in Geneva on Thursday. Meanwhile, U.S. Consumer Confidence rose to 91.2 in February. Fed officials, including Chicago Fed’s Goolsbee and Atlanta Fed’s Bostic, maintained a cautious stance on rate cuts. Today, Gold rebounded nearly 1% to trade near $5190 amid trade and geopolitical uncertainty, with focus shifting to Fed remarks and jobless claims data.

Crude Oil – WTI crude oil settled at $65.6/bbl on Tuesday after Tehran signaled it was prepared to take necessary steps to reach a deal with the US. Additionally, concerns over global growth and fuel demand intensified amid renewed tariff uncertainty. Today, WTI trades above $66/bbl, up 1% on the day, as a significant military build-up fueled speculation of potential US strikes on Iran ahead of US–Iran nuclear talks in Geneva on Thursday, with President Donald Trump reiterating in his state address that Iran cannot be allowed to develop a nuclear weapon. According to the API, US crude inventories rose by 11.4 million barrels in the week ending February 20, while gasoline and distillate stocks posted drawdowns.

Natural Gas – NYMEX gas futures extended losses, slipping to $2.905/mmBtu amid warmer weather forecasts and expectations of smaller-than-anticipated inventory withdrawals.

Base metals – Base metals gained momentum on Tuesday as Chinese markets reopened after the Lunar New Year holiday. Copper rallied nearly 3% to $13,228/tonne, while other base metals also edged higher on expectations of lower US tariffs and improving physical demand in China post-holiday. Metals tracked gains in Chinese equities amid optimism that China could face less-punitive US trade measures, with the administration reportedly proposing a 15% levy after the Supreme Court ruled against President Trump’s reciprocal duties. Nickel led gains, rising 4% to $18,060/tonne, as Indonesia considers revoking the environmental permit of PT QMB New Energy Materials following repeated fatal incidents. Today, base metals are extending gains on improved Asian market sentiment and a softer dollar index, although the significant buildup in inventories across major exchanges, particularly in copper, may limit sharp upside.

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