Global Metal Markets Under Pressure From Inflation Risks

Tashkent, Uzbekistan (UzDaily.com) — In mid-June 2026, the global metals market came under significant pressure amid a renewed escalation of geopolitical tensions in the Middle East.

The worsening conflict between the United States and Iran has fueled investor concerns over accelerating global inflation and the possibility of further interest rate increases by the US Federal Reserve.

Under these macroeconomic conditions, precious metals have shown sustained declines, while the industrial metals segment has remained comparatively more stable due to structural supply shortages and long-term demand from the real sector.

Gold has shown the most pronounced negative trend, with prices falling below US$4,200 per troy ounce, reaching a two-month low. Since late February, when tensions around Iran intensified, the safe-haven asset has lost around 20% in value.

The decline is attributed to rising oil prices, which have strengthened expectations of continued tight monetary policy from the Federal Reserve. Higher interest rates reduce the attractiveness of non-yielding assets such as gold.

A similar trend has been observed in the silver market, where prices dropped to US$64 per ounce, the lowest level since March, nearly half of January’s record highs. A shift in investor preference toward US dollar assets and US government bonds has further limited demand for precious metals.

In the industrial metals segment, sell-offs have also been recorded, but their scale has been restrained by supply-side fundamentals. Aluminum prices corrected to US$3,500 per ton, although this level remains 19% higher than at the start of the year. Prices are supported by disruptions at major producers and supply risks linked to attacks on metallurgical facilities in the Persian Gulf region.

Copper prices fell below US$6.3 per pound after recently reaching a record high, amid concerns over a potential slowdown in the global economy.

However, analysts expect a structural copper deficit to persist through the end of the decade due to demand from the energy and technology sectors, suggesting the current downturn is a temporary correction.

The diversified dynamics of commodity markets continue to be driven by the balance between US monetary policy and physical supply levels on global exchanges.