Crude Oil Prices Drop Below $107 Amid Ongoing Middle East Tensions; Gold Prices Remain Stable

Commodity Markets Trade Mixed Amid Global Uncertainty

The commodity markets experienced a mixed trading session on May 13, with various assets reacting to global macroeconomic cues, currency movements, and demand signals from major economies. The Brent crude price slipped below $107 per barrel, while the West Texas Intermediate traded near $101. The ongoing uncertainty surrounding the Middle East conflict continues to impact the oil market, with Iranian exports facing further strain due to a naval blockade around the Strait of Hormuz.

In the base metals segment, trends remained mixed. Copper prices traded higher, while aluminium and zinc also moved up. The precious metals market, however, faced pressure after higher-than-expected inflation strengthened expectations of a possible interest rate hike by the Federal Reserve later this year. As a result, gold prices remained under pressure, trading around $4,720 per ounce after falling 0.4 percent in the previous session.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

The silver price rose 0.7 percent to $87.07 per ounce, marking a gain of 18 percent so far in May. Platinum and palladium prices, however, edged lower and remained largely steady, respectively. The Bloomberg Dollar Spot Index was flat after rising 0.3 percent in the previous session.

Data released in the past showed that consumer prices recorded the sharpest increase since 2023 in April, while inflation-adjusted wages declined for the first time in three years. On the domestic front, MCX prices reflected both global cues and rupee movement, while volatility remained contained.

The Indian government took steps to curb overseas purchases of precious metals and reduce pressure on foreign exchange reserves. On Wednesday, the finance ministry issued a notification raising import duties on several categories of gold, silver, and other precious metals imports to 15 percent from 6 percent. The government also imposed a 10 percent basic customs duty and a 5 percent Agriculture Infrastructure and Development Cess on gold and silver imports, taking the effective import tax to 15 percent.