Market Recap: Precious Metals Rise, Oil Prices Up, Base Metals, Agricultural Commodities Drop

(MENAFN) Last week, the ounce price of gold reached its highest level since March 2022, hitting 2,032 and ending the week with a positive increase of 1.9 percent. The price of silver also saw an increase, hitting its highest level since April 2022 and ending the week up by 3.6 percent. Similarly, platinum and palladium prices rose by 1.7 percent and 0.8 percent, respectively. The upward trend in precious metals can be attributed to a number of factors, including global economic uncertainty and inflation concerns.

On the other hand, the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ announced a decision to cut oil production, leading to an increase in oil prices. Additionally, there has been an uptick in oil demand in China and a predicted fall in US crude oil stocks, which have further contributed to the rise in oil prices. However, natural gas prices experienced a drop due to diminishing demand brought on by warmer weather conditions.

Base metals, on the other hand, experienced a slowdown in economic activity, leading to concerns about demand. Copper, lead, aluminum, nickel, and zinc all saw a decline in prices, with copper experiencing a loss of 1.3 percent, lead losing 1.3 percent, aluminum dropping by 2.9 percent, nickel falling by 1.7 percent, and zinc decreasing by 4.5 percent.

Recession concerns have also had a negative impact on agricultural commodities. Wheat, corn, soybean, and rice prices all saw a decline, with wheat dropping by 2.4 percent, corn losing 2.6 percent, soybean decreasing by 0.8 percent, and rice falling by 4.5 percent. However, sugar and coffee prices experienced an increase, with sugar testing its highest level since October 2016 at USD0.2324 and rising by 4.3 percent, and coffee seeing an increase of 8.1 percent. Meanwhile, cotton and cocoa prices saw a decline, with cotton falling by 2.1 percent and cocoa dropping by 2.4 percent.

Overall, the market saw a mixed bag of results last week, with some sectors experiencing an increase while others saw a decline. The global economic climate, inflation concerns, and recession fears are just a few of the factors that contribute to the fluctuations in market prices.


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