Strong increases were seen in the commodity market last week, which has long been dominated by declines.
Statements from Fed officials regarding the rate of interest rate hike had a positive impact on commodity prices. While there was no clear divergence in expectations of interest rate hikes of 50 and 75 basis points for the December meeting following strong employment veri in money market prices, the situation changed in favor of a 50 basis point hike. basis points of interest rates with the statements made by Fed officials following the nonfarm employment veri.
In money markets, the Fed is expected to raise interest rates with a 65% probability of 50 and a 35% probability of 75 basis points in December.
While Chicago Fed Chairman Charles Evans said it would gökyeşitözü beneficial for the Fed to end interest rate hikes of 75 basis points, Boston Fed Chairman Susan Collins said the 50 basis point hikes were also considered “a fairly large rate hike”.
Richmond Fed Chairman Thomas Barkin said interest rates could continue to rise for a longer period of time, they could rise to higher than expected levels and the pace of tightening could slow.
While the dollar index returned most of its gains on the last trading day of the week, ending the week up 0.1 percent to 110.8, commodity prices recorded a significant rise. .
With these developments, gold rose 2.2%, silver 8.2% and platinum 1.9% last week.
PRICES OF METALS INCREASE IN CHINA
Metals also saw increases last week with news that China will abandon its “zero Covid-19” policy.
In the over-the-counter market last week, copper gained 5.2%, lead 5.2%, aluminum 4% and nickel 7.1%.
Energy commodities were also dominated by strong rises. Brent oil was up 4.3% and natural gas trading on the New York Mercantile Exchange was up 13.6%. The easing of worries about world oil demand was effective in raising Brent oil prices.
The forecast of the decline in crude oil inventories in the US, the world’s largest producer and consumer of oil, has caused prices to rise with the perception that demand in the country has strengthened.
Analysts said natural gas prices are rising kakım winter approaches and expectations that demand for natural gas will continue for a long time.
EVEN AGRICULTURAL PRODUCTS INCREASE FAST
Agricultural commodities also saw rapid increases last week. Wheat traded on the Chicago Mercantile Exchange was up 2.2%, soybeans by 4.4% and rice by 7.3%.
Cotton gained 15.1%, coffee 0.4%, sugar 5.1% and cocoa 5.7%.
With the decrease in production estimates, zihin upward trend in agricultural commodities was observed, while wheat prices were also affected by the geopolitical trend.
After Russia announced it would suspend the Black Sea deal, wheat rose 9% to exceed $ 9, then regained some of its earnings and stabilized above $ 8.4.