Oil edges lower while gold and silver retreat. Focus on the Middle East and the Fed

Mixed commodities amid tensions and rate uncertainty

Trading on June 5, 2026, opened with mixed performances across major global commodities. After the strong gains recorded in recent weeks, the energy sector showed signs of consolidation, while precious metals faced profit-taking in a market environment marked by persistent geopolitical tensions and expectations that interest rates may remain higher for longer.

According to market data, gold was trading at approximately $4,490 per ounce (-0.32%), silver at $72.90 per ounce (-1.44%), WTI crude oil at $92.77 per barrel (-0.29%), Brent crude at $95.50 per barrel (-0.06%), and Natural Gas at $3.34 per MMBtu, broadly unchanged from the previous session. The latest price action reflects a cautious stance among investors following the heightened volatility seen over the past several days.

Performance of Major Commodities

1. Gold: $4,490/ounce (-0.32%)
2. Silver: $72.90/ounce (-1.44%)
3. WTI Crude Oil: $92.77/barrel (-0.29%)
4. Brent Crude Oil: $95.50/barrel (-0.06%)
5. Natural Gas: $3.34/MMBtu (roughly unchanged)

On the geopolitical front, developments in the Middle East continue to be the primary factor influencing commodity markets. Traders remain focused on tensions involving Iran, Israel, and the United States, as well as the situation around the Strait of Hormuz, a strategic waterway through which roughly one-fifth of global oil supplies transit. Alternating concerns over a potential escalation and hopes for diplomatic progress have generated significant swings in crude oil prices throughout the week, keeping the geopolitical risk premium elevated across energy markets.

From a macroeconomic perspective, attention remains firmly on U.S. labor market data and the Federal Reserve’s upcoming policy decisions. Recent increases in energy prices have reignited concerns about inflationary pressures, prompting some investors to reassess expectations for future interest rate cuts. This environment has weighed particularly on gold and silver, which tend to underperform when bond yields and interest rate expectations move higher.

At the same time, the latest economic indicators suggest that U.S. growth remains resilient, while recent data from the United Nations Food and Agriculture Organization (FAO) pointed to a modest decline in global food prices during May, a development that could help ease some inflationary pressures over the medium term. Overall, the combination of geopolitical risk, inflation dynamics, and monetary policy expectations continues to be the dominant force shaping global commodity markets.

Andrea Pelucchi