Fed expectations shake commodity markets
Expectations that the Federal Reserve (Fed) could maintain tighter monetary policy for longer, combined with concerns over global economic growth, intensified selling pressure across commodity markets during the week of October 12–16.
With persistently high US inflation potentially prompting the Fed to remain cautious on interest rates, precious metals suffered sharp losses. On a weekly basis, silver declined 6.3%, platinum fell 3.4%, palladium dropped 3.2%, and gold lost 0.7%. Silver prices fell to $55.40 per ounce, while platinum declined to $1,598.20 per ounce, with both metals reaching their lowest levels in three months.
Concerns over global economic growth also weighed on industrial metals. Aluminum and zinc each declined 2.3%, nickel fell 2.2%, and copper lost 2.1%. Energy markets, however, showed a different trend. As conflicts in the Middle East heightened risks to oil supplies, Brent crude futures for December delivery ended the week up 4.75%, while natural gas prices fell 3.2%. Among agricultural commodities, coffee gained 6.5% and sugar rose 3%, while soybeans, wheat, and corn recorded losses.
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