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Commodity market sees mixed trends amid end of Federal Reserve rate hikes

EditorVenkatesh Jartarkar
Published 11/06/2023, 11:24 AM
© Reuters
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Last week, the commodity market experienced substantial volatility due to a variety of factors such as global economic concerns, weather-related influences, production forecasts, and speculations concerning the US Federal Reserve's interest rate decision. Market optimism grew as indications suggested that the US Federal Reserve's cycle of rate hikes has come to an end.

The Federal Reserve maintained its federal funds rate at the 5.25%-5.5% target range, a move that was supported by Chairman Jerome Powell's comments and met with market expectations, thereby stimulating risk appetite. This decision was reported by Anadolu Agency last week.

In the precious metals sector, there was a mixed trend. Gold and palladium saw a decline of 0.6% and 0.3% respectively, while silver and platinum experienced an increase, rising by 0.4% and 2.9% respectively.

In the energy market, Brent oil prices declined by 4.2%, but this decrease was counterbalanced by an 11.1% surge in natural gas prices on the New York Mercantile Exchange.

Other commodities such as copper, lead, aluminum, and zinc also saw price increases, providing a stark contrast to the 1.5% fall in nickel prices last week.

These fluctuations in the commodity market last week were largely driven by the culmination of the US Federal Reserve's rate hikes, global economic uncertainty, production estimates, and weather-related impacts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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