In commodity markets this week, a mixed outlook prevailed as ongoing tensions in the Middle East, supply concerns stemming from the Strait of Hormuz, and rising energy prices fueling inflation expectations shaped pricing, while investors turned their focus to the monetary policy steps of major central banks.
Uncertainty surrounding US-Iran negotiations supported a cautious market stance, while signals toward renewed talks later in the week partially boosted risk appetite. However, concerns that higher energy costs could intensify inflationary pressures led to a postponement of expectations for interest rate cuts by the US Federal Reserve.
A stronger dollar and rising bond yields put pressure on precious metals, while geopolitical risks provided limited support for safe-haven demand. In base metals, weak demand signals from China and supply-side developments influenced pricing, whereas in energy markets, risks related to the Strait of Hormuz supported upward movement in oil prices.
In agricultural commodities, rising energy and logistics costs along with weather conditions played a decisive role in pricing, with mixed movements observed depending on product-specific supply and demand dynamics.
Sourced by: Anadolu Agency
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