Commodity Markets Climb Amid Fed Rate Cuts

(MENAFN) Commodity prices experienced a notable upswing last month as the Fed maintained its rate reductions and trade frictions between the US and China softened. Meanwhile, geopolitical uncertainties continued to influence the trajectory of prices.

Gold surged 3.7% last month, reaching a record level of "$4,381.55 per ounce," while silver advanced 4.3% to achieve an all-time peak of "$54.7 per ounce." Platinum touched its highest mark since February 2013 at "$1,734 per ounce."

The rebound of the US Dollar Index, combined with investors shifting towards profit-taking, caused gold to retreat from its record highs.

In contrast, the quest for "safe-haven assets," robust industrial demand, and persistent supply constraints drove silver higher, while reduced production bolstered platinum prices.

Aluminum climbed 7.8% due to growing utilization in the global green transition and a sharp surge in demand for renewable energy and electric transportation applications. Zinc rose 3.4%, supported by declining inventories on the London Metal Exchange.

Copper gained 5.3% per pound, lead increased 1.8%, and nickel dipped 0.3%.

Natural gas soared 24.9% amid worries over shortages in northern regions as temperatures dropped since winter began, whereas Brent crude oil decreased by 2.2%.

Agricultural commodities also moved significantly. Soybeans jumped 11.3% per bushel following the meeting between US President Donald Trump and Chinese President Xi Jinping.

Wheat increased 5.1% per bushel due to heightened Chinese demand, corn rose 3.9%, fueled by the soybean rally, and rice declined 8.1%.

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