Changing Balances in Commodity Markets: Gold Declined, Wheat Increased
Last week, while US Federal Reserve policies and supply concerns shaped the commodity markets, gold declined and agricultural products gained value.
A volatile week dominated by the policies of the US Federal Reserve, geopolitical developments, and supply concerns has been left behind in global commodity markets.
General Weekly Overview of the Markets
In the completed week in global commodity markets, increasing expectations regarding potential hawkish steps by the US Federal Reserve and developments in the Middle East were closely monitored.
Fed Statements Pressured Gold
Fed Chair Kevin Warsh's messages prioritizing inflation strengthened expectations for rate hikes and caused the ounce price of gold to fall.
As a result of these developments, gold's three-week uninterrupted winning streak came to an end, and a general decline was observed in precious metals.
Losses in Precious Metals
According to weekly data, among precious metals, palladium showed an increase of 5.3 percent, while selling pressure dominated the other metals.
During the same period, silver lost 3.8 percent, gold 3.2 percent, and platinum 3.0 percent in value, completing the week.
Decline in Oil Prices
Expectations that the Strait of Hormuz could be reopened caused oil prices to move downward in energy markets.
Under the influence of these developments, the barrel price of Brent crude closed the week with a 4.8 percent decline.
Rise in Agricultural Commodities
Shipment risks in the Black Sea region and concerns regarding agricultural production drove agricultural commodity prices upward.
Wheat prices traded on the Chicago Board of Trade recorded a notable increase of 12.1 percent per bushel.