Sharp Decline in Precious Metals: Gold Drops Below $4,000
While precious metals declined in the commodity market due to Fed policies and geopolitical risks, gold fell below $4,000 for the first time since July.
In the commodity market, alongside policies by the US Federal Reserve (Fed), geopolitical risks in the Middle East, and supply factors, precious metals closed the week with sharp losses; spot gold fell by 4%, platinum by 4.9%, silver by 5.3%, and palladium by 6.5%. Spot gold dropped below $4,000 for the first time since July.
Tensions in the Middle East, rising energy prices, and expectations that the Fed may maintain its tight monetary policy influenced the pricing. Spot silver saw its lowest level since November 2025 at $53, while spot palladium reached its lowest level since June 2025 at $1,039.55. Analysts stated that expectations of rising oil prices increasing inflation and prompting central banks toward tight policies put pressure on the metals.
In the base metals group, copper declined by 0.8%, while increases were recorded in the prices of zinc, aluminum, lead, and nickel. In the energy group, the per-barrel price of December Brent crude increased by 6.5%, while the megawatt-hour price of natural gas on the Netherlands-based TTF rose to 94 euros, reaching its highest level since December 2022. Wheat and corn prices declined amid optimism over Russia-Ukraine peace.
Sources
- sabah.com.tr · Link