Quote on Commodities Commentary 21st May 2026 by Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd
Below the Quote on Commodities Commentary 21st May 2026 by Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd
Gold prices were steady in early morning trade, after swings witnessed in yesterday’s session, as markets continued to price in hopes of a potential peace agreement between the U.S. and Iran.
Sentiment improved after President Trump said the conflict with Iran was in its “final stages,” while also indicating that negotiations were progressing positively. However, President Trump warned that failure to reach a deal could still trigger fresh U.S. military action, limiting broader risk appetite. Strait of Hormuz remained largely shut, keeping oil prices elevated despite a correction earlier this week, and maintaining concerns over supply disruptions and energy-driven inflation.
U.S. dollar weakened and Treasury yields retreated after the recent global bond market sell-off cooled, helping improve sentiment towards precious metals. Minutes from Federal Reserve’s April meeting showed that most policymakers believed rate hikes “would likely become appropriate” if inflation remained persistently above the Fed’s 2% target. Recent CPI and PPI data have already reflected the impact of surging oil prices on inflation, reinforcing expectations that central banks could maintain a hawkish stance.
Markets currently expect the Fed to keep rates steady this year, although rate hike expectations for the second half of 2026 have increased. Investors now remain focused on further developments in U.S.-Iran negotiations and their impact on oil prices, inflation expectations, and global monetary policy. Focus today will be on preliminary manufacturing and Services PMI data from major economies.
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