US Federal Reserve raises policy interest rate by 25 basis points to the 3.75-4 percent range
Following the Fed's first rate hike since July 2023, a mixed trend was observed in commodity prices across global markets.
The US Federal Reserve raised its policy interest rate by 25 basis points for the first time since July 2023, bringing it to the 3.75-4 percent range. This decision led to varying price movements across commodity groups in global markets.
Fed's Interest Rate Decision
The US Federal Reserve raised its policy interest rate by 25 basis points to the 3.75-4 percent range. The bank went ahead with an interest rate hike for the first time since July 2023.
Rise in Precious Metals
Precious metals followed a positive trend. On an ounce basis, prices increased by 2.8 percent in silver, 0.7 percent in gold, 0.2 percent in platinum, and 0.1 percent in palladium.
Mixed Outlook in Base Metals
Economic data from China and supply developments in the physical market impacted base metals. While increases of 2.5 percent in copper, 1.7 percent in zinc and lead, and 1.4 percent in aluminum were observed, nickel experienced a decline of 1.7 percent.
Developments in the Energy Market
Energy prices rose in the first part of the week due to geopolitical risks in the Middle East. On a weekly basis, the price of natural gas increased by 0.6 percent, while the barrel price of Brent crude fell by 2 percent.