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Sign InAmid escalating geopolitical risks reshaping safe-haven flows, commodity markets witnessed sharp volatility across key assets. Gold prices slumped to their lowest level since March 23 as fresh Middle East escalations dampened market sentiment, while oil prices jumped more than 2% following overnight military strikes traded between the US and Iran. Additionally, China's trade data revealed that unwrought copper imports rose 4.4% year-on-year in May, even as year-to-date volumes remained down by 7%.
The rebound in crude oil is primarily driven by supply risk fears in the global energy corridor, with analysts noting that direct military engagement between Washington and Tehran adds a significant risk premium to prices. In contrast, base metals like copper and aluminum faced headwinds due to mixed economic signals from China, where cumulative copper imports remain depressed compared to previous periods per ING Economics reports. Market sentiment was further influenced by global inflation data, including Turkey’s annual inflation rate hitting 32.61% in June per market data.
Traders should closely monitor gold's technical support levels following the breach of March lows, while treating military developments as the primary catalyst for energy prices. Looking ahead, the economic calendar features US Initial Jobless Claims on June 4, 2026, followed by the Eurozone Gross Domestic Product (GDP) release on June 5, 2026. These data points will be critical in assessing global demand resilience amid the current geopolitical instability.