Commodities Markets Today: Oil Holds Near $80 as Gold Reaches Seven-Week High

Oil prices remained volatile as traders assessed negotiations concerning the Strait of Hormuz, while gold extended its rally above $4,250 an ounce. Copper eased modestly but continued to benefit from long-term demand linked to electrification, data centres and artificial intelligence.

BRUSSELS, August 6, 2026 — Commodity markets delivered mixed signals on Thursday. Crude oil stabilised near $80 per barrel as investors cautiously evaluated diplomatic efforts to improve navigation through the Strait of Hormuz. Gold, meanwhile, reached a seven-week high, supported by a weaker US dollar and declining expectations of another near-term Federal Reserve interest-rate increase.

Industrial metals were comparatively subdued. Copper futures edged lower during European trading, although investment in electricity networks, artificial-intelligence infrastructure, renewable energy and defence continues to support the metal’s longer-term demand outlook.

Commodity market snapshot

Commodity	Indicative level	Session direction
Brent crude	Around $80/barrel	Higher
WTI crude	Around $75.50/barrel	Higher
Spot gold	Around $4,255/ounce	Higher
Silver	Around $61.80/ounce	Lower
Copper futures	Around $6.70/lb	Slightly lower
Platinum	—	Higher
Palladium	—	Higher

Indicative prices observed during the August 6 session. Commodity prices can change rapidly.

Oil rebounds as traders question progress on Hormuz

Crude prices recovered modestly on Thursday after initially declining on hopes that diplomatic negotiations could facilitate safer maritime traffic through the Strait of Hormuz.

Brent crude traded around $80 per barrel, while US West Texas Intermediate held near $75.50. The recovery suggested that investors were unwilling to assume that the reported negotiations would quickly produce a durable solution.

Iran and Oman have reportedly discussed an arrangement concerning navigation in the region. However, considerable uncertainty remains about its precise terms, its acceptance by the United States and its practical implementation.

The Strait of Hormuz is one of the world’s most strategically important energy routes. Any disruption can affect shipments of crude oil, liquefied natural gas and refined petroleum products.

Oil traders are consequently balancing two principal scenarios:

A credible agreement could restore more regular shipping and reduce the geopolitical premium embedded in oil prices.
A failure of negotiations could return attention to supply disruptions, constrained inventories and the possibility of further attacks.

Until commercial vessels can operate more normally and insurers become comfortable with the security environment, the market is unlikely to remove the entire geopolitical risk premium.

Physical oil conditions remain relatively tight

The moderate level of crude futures may conceal greater pressure in the physical energy market.

A Reuters analysis estimated that oil stored in the Gulf had declined to approximately 80 million barrels, compared with almost 150 million barrels during an earlier round of negotiations in June.

This smaller inventory cushion means that improved navigation through Hormuz would not necessarily result in an immediate surge in available supply. Refinery disruptions and transportation constraints have also tightened markets for diesel and other refined fuels.

Brent remains in backwardation, a market structure in which near-term contracts trade above contracts for later delivery. This normally indicates that buyers are prepared to pay a premium for oil available immediately.

A diplomatic agreement could therefore push headline crude prices lower without immediately resolving shortages in diesel, jet fuel and other petroleum products.

China increases purchases of Russian crude

Changes in Chinese purchasing patterns demonstrate how Middle East supply disruptions are reshaping global energy flows.

Sinopec has substantially increased purchases of Russia’s ESPO crude to compensate for reduced supplies from the Gulf. According to Reuters, the Chinese refiner acquired between 30 and 40 cargoes for delivery from July through September, equivalent to approximately 241,000–320,000 barrels per day.

At the same time, Sinopec sharply reduced its purchases of Saudi crude. It reportedly bought no Saudi oil for delivery in June or July, followed by approximately two million barrels for August—well below the roughly 20 million barrels purchased for March and April.

ESPO is attractive to northern Chinese refiners partly because of its comparatively short transport route from Russia’s Pacific coast. However, comparisons between its price and other crude benchmarks vary according to delivery location, quality and timing.

The shift illustrates how geopolitical disruption can produce lasting changes in commercial relationships, even if transport conditions subsequently improve.

Gold holds above $4,250

Gold extended its advance on Thursday and reached its highest level in approximately seven weeks.

Spot gold traded around $4,255 an ounce, while US gold futures remained higher. The move followed a particularly strong Wednesday session, during which bullion recorded its largest daily percentage increase in several months.

Three factors are supporting the precious metal:

A weaker dollar: The US Dollar Index is close to a six-week low, making dollar-denominated gold less expensive for buyers using other currencies.
Lower oil prices: Easing energy costs could reduce inflationary pressure and limit the need for additional interest-rate increases.
Softer employment indicators: Weak US private-sector hiring has raised doubts about the resilience of the labour market.

Gold does not generate interest. It therefore tends to become more attractive when investors expect official interest rates and government-bond yields to decline.

The next major catalyst will be Friday’s official US employment report. A weaker-than-expected result could reinforce expectations of a less restrictive Federal Reserve and provide further support to gold. Strong employment and wage growth could have the opposite effect.

Why diplomacy can support gold

Gold’s advance alongside hopes of geopolitical de-escalation may initially appear counterintuitive. Reduced political risk would normally diminish safe-haven demand.

However, the current rally is being influenced by the potential consequences for inflation and monetary policy.

If improved shipping conditions reduce oil prices, energy-related inflation could moderate. That would weaken the case for additional interest-rate increases, potentially lowering bond yields and placing further pressure on the dollar.

Gold and oil can therefore move in opposite directions while responding to the same geopolitical development: falling oil prices may reduce defensive demand for gold but simultaneously improve its monetary-policy outlook.

Silver retreats as platinum and palladium advance

Other precious metals recorded mixed performances.

Silver declined to approximately $61.80 an ounce, surrendering part of its recent advance. Because silver has extensive industrial applications, its price is influenced by monetary expectations as well as perceptions of global manufacturing demand.

Platinum and palladium moved higher. Both metals remain sensitive to automotive demand, mining output and substitution between catalytic-converter technologies.

Palladium is particularly exposed to petrol-powered vehicles, while platinum also benefits from industrial applications and continuing concerns about concentrated mine supply.

Copper eases, but structural demand remains strong

Copper futures edged down to approximately $6.70 per pound. The decline was modest relative to the metal’s substantial longer-term advance.

Copper remains supported by several important investment themes:

Construction of data centres and AI infrastructure.
Expansion and modernisation of electricity grids.
Renewable-energy projects.
Electric vehicles and charging networks.
Increased European defence production.
Limited growth in new mine supply.

Aurubis, Europe’s largest copper producer, said on Thursday that it expected full-year operating earnings to reach the upper end of its forecast range. The company’s performance benefited partly from higher copper prices and favourable demand conditions.

Its outlook illustrates the broadening sources of copper consumption. Artificial intelligence requires more than semiconductors: it also depends on power generation, transmission networks, cooling equipment and extensive electrical cabling.

Copper could nevertheless remain volatile in the short term. Concerns about China’s economy, weakness in Asian technology shares and elevated valuations may encourage profit-taking following the metal’s strong advance.

Agricultural markets focus on US crop conditions

Agricultural commodity markets remain heavily influenced by weather conditions and expectations for the US harvest.

The US Department of Agriculture initially projected in February that American farmers would plant approximately 94 million acres of corn and 85 million acres of soybeans in 2026. Its June acreage survey subsequently estimated soybean plantings at approximately 85.4 million acres.

Favourable growing conditions and expectations of large harvests have limited upward pressure on grain prices. However, the outlook could change rapidly if extreme heat, drought or storms reduce crop yields during the remainder of the growing season.

Wheat faces a more constrained acreage outlook. US wheat plantings for the 2026/27 season are expected to remain historically low, reducing the market’s ability to absorb unexpected production losses elsewhere.

The principal risks facing agricultural commodities include:

Extreme weather during critical growing periods.
Export restrictions.
Higher fuel and fertiliser costs.
Disruption to international shipping.
Changes in Chinese import demand.

What commodity investors should watch next

US employment report

Friday’s nonfarm-payroll report will influence the dollar, government-bond yields and expectations for Federal Reserve policy.

A weak report could support gold through lower rate expectations. However, it might weigh on copper and other industrial commodities if investors become more concerned about economic growth.

Hormuz negotiations

A confirmed and operational maritime agreement could push oil prices lower. Traders will nevertheless require evidence that commercial ships can use the route safely before removing the entire geopolitical premium.

Refined-fuel availability

Diesel and other fuel markets may remain tight even if crude shipments recover. Refinery disruptions and transportation constraints could prevent energy prices from normalising immediately.

Chinese demand

China remains essential to global demand for copper, aluminium, iron ore and crude oil. Sinopec’s increased purchases of Russian crude demonstrate how Chinese companies are adapting their supply chains to geopolitical disruption.

US crop conditions

Weather developments during August will help determine final corn and soybean yields. Any substantial deterioration could generate renewed volatility in grain and food prices.

Commodities outlook

Commodity markets are entering a sensitive phase.

Oil prices have retreated from their crisis highs, but the physical market remains vulnerable. Inventories in the Gulf are lower, refined-fuel supplies are relatively tight and important maritime routes remain exposed to disruption.

Gold has regained momentum as softer energy prices, a weaker dollar and disappointing employment indicators reduce expectations of higher interest rates. Its immediate direction will depend heavily on the official US labour-market report.

Copper’s structural outlook remains supported by electrification, AI infrastructure and grid investment, although its elevated price increases its sensitivity to economic data and Chinese demand.

Agricultural commodities continue to reflect the tension between expectations of large US harvests and the risk that unfavourable weather could reduce final yields.

The central conclusion is that hopes of geopolitical de-escalation are affecting individual commodities differently: they are limiting oil prices, indirectly supporting gold through lower interest-rate expectations and reducing—but not eliminating—the supply risk affecting global raw-material markets.

Market prices are indicative and may change during the trading session.

Sources

Reuters — Oil gains as investors remain cautious over Iran–Oman talks — cours du Brent et du WTI, négociations sur le détroit d’Ormuz et risques pesant sur le transport maritime.
Reuters — Oil traders bet on an Iran agreement despite tightening supplies — stocks pétroliers dans le Golfe, backwardation du Brent et tensions sur le diesel.
Reuters — Sinopec increases Russian oil imports — achats de pétrole russe ESPO par Sinopec et recul de ses approvisionnements du Moyen-Orient.
Reuters — Gold reaches a seven-week high — cours de l’or, de l’argent, du platine et du palladium, faiblesse du dollar et attentes concernant la Fed.
Reuters — Aurubis expects earnings near the upper end of its forecast range — résultats d’Aurubis et demande de cuivre provenant de l’électrification, de l’IA, des centres de données et de la défense.
CME Group — Copper futures — cotations et caractéristiques des contrats à terme sur le cuivre.
Reuters — US farmers expected to plant more soybeans and less corn in 2026 — prévisions initiales de 94 millions d’acres de maïs et 85 millions d’acres de soja.
USDA — June 2026 Acreage Report — estimations officielles actualisées des superficies agricoles américaines.
Reuters — Big grain crops mask a shrinking margin for error — perspectives mondiales du blé et du maïs et diminution des superficies consacrées au blé.