Commodity wrap: Crude oil drops 12% over the week; gold, silver set for third weekly gains ahead of US-Iran talks

Furthermore, both the precious metals, gold and silver, are set to close in the positive territory for the third consecutive week.

Crude oil

In the international market, Brent Crude oil futures (for June delivery) declined over 12% in the week ending Friday, April 10, marking the worst weekly drop since 2022, according to a MarketWatch report. On Friday, the contract was trading below the $99 per barrel (bbl) mark.

On Monday, Brent Crude oil had surged to $111.89 per bbl, and continued to trade above $110/bbl on Tuesday, before falling below the $100/bbl mark for the remainder of the week.

Meanwhile, the West Texas Index (WTI) crude contract (May expiry) fell more than 12% over the week, recording its worst weekly drop since June 2025, as per media reports. The future was trading below the $100 per bbl mark on April 10.

Domestically, crude oil contracts for May delivery trailed international prices, falling 8% over the week, on the Multi-Commodity Exchange (MCX).

Crude oil prices declined as the United States and Iran entered into a temporary two-week ceasefire with safe passage for crude through the Strait of Hormuz.

However, Israeli strikes on Lebanon, along with confusion over Iran’s proposed 10-point framework for negotiations with the United States, jeopardised the fragile ceasefire.

Furthermore, Russia’s TASS news agency, late on Thursday, reported that Iran will allow no more than 15 vessels per day to transit the Strait of Hormuz under the ceasefire.

Crude prices were trading below $99 per bbl on Friday, as Israel announced its plans to begin direct negotiations, according to media reports. Iran and the US will hold direct talks in Pakistan for the first time since the beginning of the war in West Asia.

Gold

Globally, over the past five days, the COMEX gold contract (June expiry) surged 3%, as the yellow metal headed for its third consecutive weekly gain.

However, it declined as much as 1.36% to an intraday low of $4,752.70 per troy ounce on Friday, compared to the closing price of $4,818 per ounce in the previous session.

On the MCX, gold futures for expiry in June are set to close about 2% higher this week. Despite this, the contract fell as much as 1.1% to hit the day’s low of ₹1,51,745 per 10 grams on April 10, in comparison to the close of ₹1,53,434 per 10 grams on Thursday.

Aside from the geopolitical factors, the US Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, rose 2.8% in February. The US Consumer Price Index (CPI) increased by 3.3% annually in March, driven by a 10.9% surge in energy costs.

Investors are betting on the US Federal Reserve to keep the policy rates unchanged at its upcoming meeting scheduled for April 28–29, according to the CME Group’s Fedwatch.

Silver

In the international market, COMEX silver future contracts are set to close in the green zone for the third consecutive week, advancing 4% over the past five days.

Domestically, white metal futures have also risen over 4% this week on the MCX. However, they touched an intraday low of ₹2,39,546 per kilogram on Friday, April 10, reflecting a 1.73% decline from the closing price of ₹2,43,768 per kilogram in the previous session.