Slowing trend of economies continues affecting commodity market

By Burhan Sansarlioglu

ISTANBUL (AA) – The downward trend in the commodity market continued last week as concerns about the slowdown in economies around the world gained strength.

While growing recession concerns fueled the volatility in commodity prices, the US Federal Reserve hinted on the fact that the fight against inflation was not over yet and their hawkish statements last week were another factor affecting the commodity market.

China's data released last week continued to feed concerns about the slowdown in the world economy. Its exports plunged 6.4% in October, missing economists' expectations, while imports rose 3% unexpectedly, the first hike since February.

The price of precious metals followed a downward trend last week, with one ounce of gold down by 2.8%, the silver by 4.2% and platinum by 9.5%.

Platinum tested the lowest level since September 2022 at $843.50, and palladium, which saw the lowest level since August 2018 at $ 949.80, ended the week with a 13.9% decrease.

The price of copper decreased 2%, aluminum 0.4%, nickel 4%, while lead gained 1.3% and zinc increased 2.6%.

Last week, Brent oil dropped 4.2% and natural gas trading on the New York Mercantile Exchange went down 14.6%.

Wheat trading on the Chicago Mercantile Exchange rose 0.6% and rice increased 4.2%. On the other hand, corn, which saw the lowest level since December 2020 at $4.61, ended the week with a 2.8% fall.

Cotton trading on the Intercontinental Exchange was flat last week, while coffee lost 1.1% and sugar went down 1.6%. Cocoa gained 3.4%.

Cotton saw a one-year low of $0.7477 last week. Cocoa, on the other hand, hit a historic high of $4,035 per ton.