New york: Commodity prices experienced an increase last month, driven by the Federal Reserve's continued rate cuts and the easing of trade tensions between the United States and China, while geopolitical risks remained influential in determining price trends.
According to Anadolu Agency, gold saw a 3.7% rise, reaching a record $4,381.55 per ounce, and silver increased by 4.3% to an all-time high of $54.7 per ounce. Platinum achieved its highest price since February 2013, reaching $1,734 per ounce. The US Dollar Index's recovery and a shift among investors towards profit-taking led to a decline in gold from its record highs. However, silver benefited from strong industrial demand and an ongoing supply shortage, while declining production supported platinum prices.
Aluminum prices rose by 7.8%, spurred by increased demand associated with the global green transition and the growing use of renewable energy and electric transportation. Zinc saw a 3.4% increase due to decreasing stocks on the London Metal Exchange. Meanwhile, copper rose by 5.3% and lead by 1.8% per pound, whereas nickel experienced a slight decline of 0.3%.
Natural gas prices surged by 24.9% amid concerns over supply shortages in northern regions as winter temperatures began to drop. Conversely, Brent crude oil prices fell by 2.2%.
Agricultural commodities also experienced notable changes, with soybeans seeing an 11.3% increase per bushel following a meeting between US President Donald Trump and Chinese President Xi Jinping. Wheat prices rose by 5.1% per bushel due to increased Chinese demand, corn climbed by 3.9% following the rise in soybeans, while rice prices fell by 8.1%.
Coffee reached a historic high of $4.3795 per pound, rising by 4.6% throughout the month due to supply concerns, expected tariffs on Colombia, and declining coffee stocks. In contrast, sugar prices fell to their lowest since October 2020, at $0.1407 per pound, dropping 14% due to strong production estimates in Brazil, Thailand, and India.
Ole Hansen, head of commodity strategy at Saxo Capital, told Anadolu that gold's recent rally had entered a cooling phase. He noted that while near-term momentum had stalled, the underlying reasons for holding gold remained strong, though the timing of the next advance was uncertain. Hansen further mentioned that despite Fed Chair Jerome Powell's cautious approach, macroeconomic data suggests the next move by the bank will likely involve easing.
He added, "A softening US labor market and slowing nominal growth will likely bring additional cuts into 2026, setting the stage for renewed gold strength." Hansen also emphasized that central banks, particularly those in emerging markets seeking reserve diversification, continue to maintain a strong appetite for bullion.