NEW YORK: Commodity prices exhibited mixed trends during the Christmas week as global markets remained uncertain due to political and economic developments. The anticipation of President-elect Donald Trump's tariff policies on China, alongside signals from the Federal Reserve regarding its rate cut cycle, contributed to a high-risk perception in financial markets.
According to Anadolu Agency, the US 10-Year Futures bond reached its highest level since May, climbing to 4.26%. The US Dollar Index also remained strong, ending the week at 108.0, close to its two-year high. Analysts predict that geopolitical tensions will continue to influence central banks' gold purchases as Trump prepares to assume office in January.
The precious metals market saw gold prices decrease by 0.3% per ounce, with silver and palladium declining by 0.6% and 0.9%, respectively. In contrast, platinum experienced a 0.6% rise per ounce. Copper prices increased by 0.8% following China's announcement to reduce import tariffs on recycled copper and aluminum starting January 1. This decision, according to China's Minister of Finance, aims to boost high-quality product imports and expand domestic demand as the China-Maldives Free Trade Agreement comes into effect.
In El Salvador, the Legislative Assembly lifted a seven-year ban on metal mining, a move supported by President Nayib Bukele for economic growth but criticized by environmental groups. Meanwhile, Chile's environmental regulator fined the Los Bronces copper mine $17.2 million for environmental non-compliance.
Energy markets saw Brent crude oil prices rise by 1% due to a larger-than-expected decline in US crude oil stocks. Slovak Prime Minister Robert Fico announced potential changes to electricity supply to Ukraine amidst ongoing discussions over Russian gas transit. Natural gas prices fell 9.1% as Russia launched its first ice-class LNG carrier, enhancing its position in the global LNG market despite US sanctions.
In agricultural commodities, wheat prices rose by 2.7% supported by Ukraine's humanitarian efforts with the UN World Food Program. Soybeans increased by 1.1% following a Brazilian Supreme Court ruling that protected tax breaks for firms adhering to anti-deforestation agreements. Meanwhile, corn rose by 1.7%, rice fell by 2.2%, and sugar decreased by 0.8% due to weather-related challenges in India.
The cocoa market experienced a significant drop of 15.31% amid concerns about the Harmattan winds' impact on crops in the Ivory Coast. The global commodity markets continue to navigate through a complex web of economic, environmental, and political factors that influence pricing and availability.