Quote on Commodities Commentary May 2026 by Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd
Below the Quote on Commodities Commentary May 2026 by Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd
Gold prices edged lower as rising oil prices, a stronger dollar and US Yields, weighed on sentiment following reports of a vessel seizure and another ship sinking. Investors remained focused on U.S.President Trump meeting Chinese President Xi Jinping in Beijing. Expectations for U.S. interest rate cuts have largely diminished, according to CME Group's FedWatch tool, after sharp energy-driven increases in April producer and consumer inflation. Benchmark 10-year U.S. Treasury yields climbed close to one-year highs, raising the opportunity cost of holding non-yielding assets such as gold.
A series of inflation reports released this week highlighted the risk that higher energy prices could spread into broader goods and services inflation, further reducing hopes for near-term Federal Reserve rate cuts. On the geopolitical front, Trump and Xi were set to conclude a two-day state visit marked by business agreements and ceremonial events, though Xi also warned that mishandling the Taiwan issue could severely damage bilateral relations.
Markets also reacted to India's decision to raise gold and silver import duties to nearly 15% from around 6%, a move aimed at reducing bullion imports and supporting forex reserves, but one that could hurt jewelry demand in one of the world's largest consuming nations. Along with this Government has also imposed restrictions on Gold with a quantity limit of 100kgs, one more policy aimed to control the deficit and reserves also impacting demand and weighing on prices. Focus today will be on US Industrial Production.
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