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FOMC Minutes, Supply Risks, Geopolitics to Drive Commodity Markets This Week
M
Moneycontrol•04-10-2026, 06:45
FOMC Minutes, Supply Risks, Geopolitics to Drive Commodity Markets This Week
- •Markets closed a turbulent week with a sharp bond selloff and repricing of Fed rate outlook due to soft US data.
- •The dollar surged above 102 for the first time since April 2025, with US 10-year Treasury yield hitting 5.34%.
- •Spot gold and silver fell over 3% and 6% respectively, as dollar and yield surge outweighed rate relief.
- •Crude closed lower due to a G7 plan to draw down 100 million barrels of reserves, but losses were limited by Gulf risk.
- •Base metals, including copper, zinc, and aluminum, fell sharply as the strong dollar weighed on dollar-priced commodities.
Key Questions Answered
Markets ended the week driven by a sharp bond selloff, a stronger US dollar, soft macroeconomic data releases including the September payrolls report, and ongoing geopolitical and supply risks affecting crude and base metals.
The September jobs report showed only 29,000 jobs added alongside a rising unemployment rate and cooling wage growth, causing hike odds for the October Fed meeting to collapse from above 60 percent to below 20 percent.
Crude prices were pressured by a coordinated G7 plan to draw down up to 100 million barrels of diesel and crude reserves over four months, alongside ongoing Gulf risks, Saudi pipeline updates, and dispatch of a US carrier strike group.
