- BIST10011,430-2.49%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,159.10-0.53%
- INTEREST37.00%-1.00
- BITCOIN81,967-0.06%
- October 19, 202617°
- BIST10011,430-2.49%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,159.10-0.53%
- INTEREST37.00%-1.00
- BITCOIN81,967-0.06%
- October 19, 202617°
US inflation and Fed expectations drive commodity prices lower
High inflation in the United States strengthened expectations that the Fed will keep interest rates high for longer, increasing selling pressure in commodity markets. Silver fell 6.3%, platinum 3.4%, palladium 3.2% and gold 0.7%.
Persistently high inflation in the United States strengthened expectations that the Fed will keep borrowing costs high for longer. While expectations that the Fed will not raise interest rates this month remained intact, concerns about commodity demand increased amid expectations of tighter monetary policy at subsequent meetings.
Precious metals decline
Precious metals ended the week lower on an ounce-price basis. Silver fell 6.3%, platinum 3.4%, palladium 3.2% and gold 0.7%.
Silver fell to $55.40 an ounce and platinum to $1,598.20 an ounce, their lowest levels in the past three months. Palladium also fell to $1,092 an ounce, its lowest level since August 2025.
Despite declines in bond yields and the dollar index, expectations that the Fed will maintain its tight monetary policy caused gold to end the week lower. Expectations of weaker demand for conventional automobiles pressured platinum and palladium, while expectations of declining jewelry demand in China also contributed to the drop in platinum prices.
Supply and demand weigh on copper and base metals
All base metals recorded weekly declines in the over-the-counter market. Aluminum and zinc fell 2.3%, nickel 2.2%, copper 2.1% and lead 0.2%.
Concerns about global growth pressured copper and silver prices. A preliminary agreement reached with workers at Chile's Escondida copper mine was expected to avert a possible strike, while easing supply concerns pushed copper prices lower.
Higher aluminum production in Indonesia eased supply concerns and led to a decline in prices. Lower demand in the global stainless steel sector also pressured nickel prices.
Energy products move in different directions
Energy products ended the week in different directions. The price of December Brent crude futures rose 4.75% to a barrel. Continued conflicts in the Middle East kept concerns about oil supplies alive, pushing prices higher.
Meanwhile, the price of natural gas traded on the New York exchange, measured in British thermal units, fell 3.2%. Expectations of mild temperatures in the United States and high natural gas inventories created downward pressure on prices.
Mixed performance in agricultural commodities
At the Chicago Board of Trade, prices per bushel fell 2.4% for soybeans, 1.7% for wheat and 1.2% for corn, while rice prices rose 2.2%.
On the Intercontinental Exchange in the United States, coffee rose 6.5% and sugar 3% on a per-pound basis. Cotton fell 0.7%, while cocoa prices rose 0.4% per tonne.
Increased wheat supplies from Russia pushed wheat prices lower. Rising corn production in the United States pressured corn prices, while faster soybean harvesting and high inventories also led to lower prices.
The appreciation of the Indian rupee against the dollar and expectations that climate-related factors would reduce rice supplies supported rice prices. Expectations that the El Niño weather pattern could negatively affect coffee and sugar production in Brazil led to sharp increases in both commodities.
Increased cocoa grinding volumes in Europe and Asia indicated rising demand for cocoa.
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