Most commodities were in the red on Thursday as the market took a breather from ongoing rallies in precious metals and oil.
Gold prices fell after weaker economic data from the US strengthened the dollar, making the precious metal more expensive for overseas buyers.
Silver prices also declined more than 1%, but stayed above the recently conquered level of $90 per ounce.
Meanwhile, oil prices plunged from their recent gains as US President Donald Trump announced that tensions in Iran are likely to ease.
On the other hand, tin continues its 2026 trend by leading the base metals higher this morning, which are otherwise showing mixed performance.
However, the three-month copper contract on the London Metal Exchange was down 1.2% at $13,065 per ton, while the aluminium contract was at $3,172.25 per ton, down 0.5%.
Gold and silver decline
Gold’s safe-haven appeal decreased, causing prices to fall on Wednesday.
This decline was due to two main factors: a strengthened dollar, which was boosted by weaker-than-expected US weekly jobless claims data, and a moderated tone on Iran from US President Trump.
At the time of writing, the gold contract on COMEX was at $4,620.80 per ounce, down 0.3%, while silver was down 1.3% at $90.283 an ounce.
The dollar index reached its highest level since December 2 after data revealed an unexpected decrease in new applications for US unemployment benefits last week.
Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 198,000 for the week ended January 10, the Labour Department said on Thursday.
Economists polled by Reuters had forecast 215,000 claims for the latest week.
“At the same time, easing geopolitical fears around Iran trimmed some safe-haven demand,” said David Morrison, senior market analyst at Trade Nation.
Silver prices, on the other hand, fell more sharply than gold overnight after hitting fresh record highs above $93 per ounce.
Morrison added:
While this selloff took place at the start of the Asian Pacific session, when liquidity is poor, it still demonstrates the kind of volatility that traders should now expect with silver trading at such lofty levels.
Oil plunges nearly 5%
Concerns about military action against Iran and potential oil supply disruptions eased, leading to a drop in oil prices of nearly 5% on Thursday.
This decline followed Trump’s statement that the killings of demonstrators during protests in Iran were ceasing.
This alleviated concerns over Trump’s earlier comments, hinting at a US military action against Iran.
At the time of writing, the price of West Texas Intermediate crude was at $59.09 per barrel, down 4.7%, while Brent was also 4.5% lower at $63.52 a barrel.
A US official announced on Wednesday that the country is pulling back some military personnel from Middle Eastern bases.
This action follows a statement from a senior Iranian official who warned that Tehran would target American bases if Washington launched a strike, a message that Iran has conveyed to its neighbours.
“The question now is whether the US military threat is over. And, if so, will crude oil fall further with prices dropping back into the downside trend?” said Morrison.
That said, the broader backdrop remains complex.
Crude oil prices are currently being pressured by rising US inventories and increased oil flows from Venezuela to the US.
However, persistent geopolitical uncertainty is likely to prevent prices from falling too low, according to Morrison.
Rising US crude inventories and increased Venezuelan oil flows toward the US weigh on prices. But ongoing geopolitical uncertainty may still put a floor under crude oil for now.