Commodity markets shift to upward trend last week

By Burhan Sansarlioglu

ISTANBUL (AA) – Commodity markets followed a positive course last week amid ongoing geopolitical risks and the Chinese government's steps to support economy.

The tension running high in the Middle East has bolstered a hike commodity prices.

Concerns continue that the conflict between the Israeli army and the Palestinian group Hamas may spread to other countries.

Supply problems persist, especially in the commodity markets, as the Israel-Palestine conflict, which started on Oct. 7, still continues despite the reactions from all around the world.

Last week, geopolitical risks directly affected precious metals except for silver.

Carrying on its upward trend for the third week in a row, the ounce price of gold ended the week at $2,005.9 with an hike of 1.2%. The price of gold per ounce has surpassed the $2,000 threshold for the first time since the end of July.

While palladium and platinum rose by 2.2% each and platinum gained by 0.7%, silver lost by 1.1%.

Silver lost ground as concerns increased that the policy rate would be kept at higher levels for longer than expected after the economic data in the US exceeded expectations.

Last week, copper went up by 2.6%, lead by 1.1%, aluminum by 1.7%, and zinc by 2.1% in the over-the-counter market, while nickel dropped by 2.3%.

On the energy commodities side, Brent oil declined by 2.8% last week, while natural gas traded on the New York Mercantile Exchange gained by 18.7%.

Ongoing concerns about economic activity in Europe had a negative impact on Brent oil.

Private sector activity in the Eurozone fell this month to its lowest level since November 2020.

Agricultural commodities posted mixed figures last week.

Wheat and corn trading on the Chicago Mercantile Exchange fell by 1.8% and 3%, respectively, while soybeans and rice edged up by 1.2% and 2.4%, respectively.

While coffee trading on the Intercontinental Exchange decreased by 2.6%, sugar and cotton hiked by 1.9% and 2.7%, respectively.

Cocoa, which reached a historical peak of $3,781 per ton, ended the week with a 4.3% increase.