Global growth concerns and Fed expectations lead to a decline in the commodity market
Expectations of a hawkish monetary policy from the US Federal Reserve and concerns regarding global economic growth have triggered widespread selling pressure on precious and base metals.
Hawkish expectations regarding the US Federal Reserve's (Fed) monetary policy and concerns over global growth have caused a sharp sell-off in commodity markets. As prices across precious and base metals declined, some metals reached their lowest levels on a monthly basis.
High inflation data in the US has strengthened market expectations that the Fed will keep borrowing costs high for an extended period. This has led investors to move away from precious metals. The ounce price of silver fell to $55.4 and platinum to $1,598.20, marking their lowest levels in three months, while palladium dropped to $1,092 per ounce, its lowest level since August 2025.
Weekly losses in precious metals were 6.3 percent for silver, 3.4 percent for platinum, 3.2 percent for palladium, and 0.7 percent for gold. Base metals were also affected by this selling pressure; aluminum and zinc lost 2.3 percent, nickel 2.2 percent, copper 2.1 percent, and lead 0.2 percent in value.