The commodity markets are giving mixed signals as the nomination of Kevin Warsh for the US Federal Reserve Chair boosts the dollar and stirs volatility. Partial easing of US-China tariffs has mildly improved trade conditions. However, geopolitical tensions remain high, keeping market jitters alive. Gold and silver prices surged early January but then fell sharply after Warsh’s nomination raised the dollar. Prices bounced back in early February as buyers took advantage of lower levels. “Gold and silver remain very sensitive to policy signals and currency movements,” said experts. Despite recent ups and downs, gold’s long-term outlook is strong due to central bank buying, geopolitical uncertainty, and expectations of future rate cuts. Base metals like copper, aluminium, and nickel saw strong gains entering 2026 from supply tightness and energy transition demand. Copper neared record highs amid smelter disruptions, forecasting a 1 million ton deficit this year. Yet, China’s manufacturing PMI fell below 50, indicating weaker demand, which slowed momentum. Higher inventories and cautious Chinese demand signal short-term challenges. Energy markets split paths: natural gas prices rose due to cold weather and power needs, while crude oil remained weak amid growing supplies. The IEA reports global oil stockpiles are rising, suggesting crude may stay in a reset phase. A stronger dollar could pressure oil prices further, as crude is dollar-priced. Overall, markets look set for a several-week consolidation, not a major reversal. Influences include the Fed succession, ongoing policy uncertainties, China’s softer demand, and geopolitical tensions. Long-term prospects for select commodities stay positive with copper deficits, steady gas demand, and gold’s safe-haven appeal. Tariff relief offers limited, mostly temporary support. Elevated geopolitical risks may maintain high market volatility and encourage safe-asset buying. A steady or stronger dollar might limit gains near term, but this signals a market reset rather than a downturn, according to Hareesh V, Head of Commodity Research at Geojit Investments Limited.