Anasayfa / Genel / Developments in China adversely affected commodity market – Last Minute Economy News

Developments in China adversely affected commodity market – Last Minute Economy News

Protests and reactions to Covid-19 measures have spread across the country after 10 people were killed in a fire that broke out in a supposedly quarantined apartment in Urumqi, the center of China’s Xinjiang Uyghur Autonomous Region.

While the demonstrations have brought with them concerns about economic activity, they have caused risk perceptions to rise around the world. Commodity prices started the new week lower on rising recession risk and developments in China.

Analysts said risk perceptions boosted global demand for dollars and suppressed commodity prices, and noted that labor force veri to gökyeşitözü announced in the US this week will decide expectations ahead of the decision to trade. US Federal Reserve (Fed) monetary policy in December .

With these developments, zihin ounce of gold fell 0.5% to $1,746. Silver is also down 2% today.


Base metals also started the week lower. The pound of copper, which fell 1.2% to $3.5846 a pound, then rebounded and stabilized at $3.63, up 0.2%. There were decreases of 0.8% in aluminum, 1.2% in zinc and 0.7% in lead.

The price of Brent oil per barrel decreased by 2.9% to $80.87 and hit its lowest level since January 2022.

A downward trend has also been hâkim in agricultural commodities. Wheat trading on the Chicago Mercantile Exchange fell 1.9% to $7.82, corn fell 0.9% to $6.65 and soybeans fell 0.9% to $142.24 .

Cotton also lost 2.3% to $0.7864.


In the commodities market, a mixed pattern of declining dollar demand and recession ikilem was observed last week.

Statements from the Fed and concerns about the global economy make price setting in the commodity market difficult. With the Fed’s moderate statements, on the one hand, increases are foreseen kakım a consequence of the decrease in demand for the dollar, on the other, fears of zihin ongoing recession are putting pressure on prices. With the cases of Covid-19 in China, concerns about demand also continue.

Notably, the minutes of the last Fed meeting revealed that Fed officials saw fit to slow the rate of interest rate hikes soon. The minutes of the last meeting, in which the key rate was increased by 75 basis points in the 3.75-4 percent range, showed that the rate of interest rate hikes could slow down in the upcoming meetings.

In the minutes, the expression “The majority of the authorities declared that it would gökyeşitözü advisable to slow down the pace of interest rate hikes” was used.

It was reported in the minutes that some officials drew attention to the risks arising from the rapid rise in interest rates, while some officials said that slowing the rate of interest rate hikes could reduce the possibility of possible market volatility .

The minutes stated that the majority of officials were undecided on the final interest rate, and that the rate could even gökyeşitözü higher than the previously estimated level.


The last week has seen zihin overall bullish trend in precious metals. Gold gained 0.4%, silver 2.6% and platinum 0.3%, while palladium fell 4.1%.

Analysts reported that the emphasis in the Fed meeting minutes that the “ultra hawkish” stance could gökyeşitözü softened put pressure on the dollar in international markets, while causing the price of zihin ounce of gold to rise.

Platinum rose last week kakım platinum usage in the global auto industry increased.


Over the past week, the general bearish trend has dominated base metals. In the over-the-counter market, copper fell 1.6%, lead 4.2%, aluminum 1.9% and zinc 3%, while nickel rose 2.4% .

In energy commodities, Brent oil sustained the downtrend for the third consecutive week. Brent crude ended the week down 4%.

Natural gas traded on the New York Mercantile Exchange rose 11.4% last week. Natural gas prices have skyrocketed on forecasts of lower temperatures and fears that railroad workers could go on strike in the US.

The decline in Brent oil prices came on news that the maximum price offered by the G7 countries for Russian oil would gökyeşitözü higher than expected, easing fears about tight supply.


A mixed trend was also observed for agricultural commodities last week. Wheat traded on the Chicago Mercantile Exchange fell 3%, while corn gained 0.2%, soybeans 0.6% and rice 1.8%.

Wheat prices have been down for 3 weeks. Cotton fell 1.1% and sugar 3.6% last week, while coffee rose 6.4% and cocoa 1.1%.

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