Precious Metals Stand Out in the Commodity Market

The Extraordinary Rise of Precious Metals

Last week, the mixed trend observed in the commodity markets led to a clear separation of precious metals from other commodities. Particularly, gold and silver recorded sharp increases alongside rising uncertainties and safe-haven demands.

Trade Tensions and Fed Messages

The trade tension between the U.S. and China continues to attract the attention of investors. The U.S. President's statement that a 100% tariff on China is not sustainable alleviated the tension created in the markets. Jerome Powell's signals regarding the Fed's monetary policy have also been another factor closely monitored by investors.

Gold Prices Hit Record Highs

The price of gold per ounce closed the week at $4,250, marking an increase for the ninth consecutive week. Mid-week, gold reached a peak of $4,379.42, continuing to play a leading role in investors' search for safe havens.

Silver, benefitting from supply shortages and rising gold prices, reached its historical high of $54.71 and closed the week at $52.

Fluctuations in Oil and Agricultural Commodities

Oil prices fell to $61.04 due to concerns over surplus supply and decreasing geopolitical risks, hitting the lowest level in the last 5 months. The unexpected increase in crude oil stocks from the U.S. contributed to supply pressures, negatively impacting prices.

In agricultural commodities, weather conditions and U.S.-China trade policies were decisive in pricing. An increase of 1.4% was observed in soybeans, 1.2% in wheat, and 2.4% in corn, while rice prices experienced a decrease of 0.6%.

Conclusion

In parallel with all these developments, while the markets for precious metals and agricultural products displayed a mixed trend, investors' eyes were focused on U.S. macroeconomic data and potential moves by the Fed. Achieving stability in the commodity markets will be possible with the clarification of uncertainties in the upcoming period.