Apr 23, 2024 (MENAFN via COMTEX) --
(MENAFN) The commodity markets underwent a turbulent week marked by significant fluctuations, largely influenced by geopolitical risks, sanctions, and uncertainties surrounding central bank policies. Macroeconomic indicators from the US fueled expectations that the Federal Reserve might maintain high interest rates for a longer duration than previously anticipated. Concurrently, ongoing tensions in the Middle East intensified uncertainties, particularly impacting commodity prices.
The persistent global battle against inflation continues to pose challenges, with concerns that conflicts in the Middle East could exacerbate inflationary pressures by disrupting commodity markets. Moreover, the potential escalation of tensions between Israel and Iran looms as a factor that could sway central bank decisions, further complicating pricing dynamics.
Geopolitical risks, coupled with demand from central banks and Chinese consumers, contributed to an uptick in gold prices. Investors remained cautious amidst the backdrop of US economic data releases and Federal Reserve Chairman Jerome Powell's hawkish stance, as suggested by analysts.
Meanwhile, silver prices saw an increase, propelled by reduced production in global mines and growing industrial demand. Consequently, over the past week, the price of an ounce of gold surged by 2 percent, while silver experienced a 2.9 percent rise. In contrast, platinum witnessed a decline of 4.3 percent, and palladium fell by 2 percent.
US President Joe Biden's recent remarks regarding China, including a proposal to triple tariffs on Chinese steel and aluminum, played a significant role in driving up base metal prices. Additionally, the maintenance of US and UK sanctions on Russian metals further influenced market dynamics during the week.
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COMTEX_451299306/2604/2024-04-23T16:38:44
