ISTANBUL
An upward trend dominated the commodity market last week after it overcame the pricing difficulties a week before.
Production cuts, an increase in exports of commodity market products and decrease in the demand for the US dollar were among the main factors supporting the commodity market.
Commodity prices rose as the macroeconomic data released around the world softened the recession concerns.
An increase in oil, natural gas and coal outputs as well as electricity production in China in 2022 compared to the previous year were among the factors raising the demand.
According to analysts, there is uncertainty for the Federal Reserve's rate hikes in the coming months. It is also likely that nonfarm employment data to be announced on Friday and the guidance of Fed Chair Jerome Powell will likely affect market expectations.
On the European Central Bank side, analysts said it is predicted that interest rate hikes will continue in March, but that possible signals about where the bank might end interest rate hikes are important.
They argued that the Fed is considered certain to increase the policy rate by 25 basis points next week and that the expectations that the Fed will slow down the rate hikes increased gold prices.
While gold prices were up 0.1% last week, palladium dropped 6.4%, platinum fell 2.9%, and silver lost 1.6%.
Meanwhile, copper rose 0.7%, lead increased 1.7%, aluminum gained 1.2%, nickel rose 2.5%, and zinc went up 14.9% last week.
Energy
Last week, energy commodities posted declines, as Brent oil dropped by 1.9% and natural gas fell by 10.1%.
The price of natural gas fell below $2 for the first time since May 2021.
Uncertainties related to China's COVID-19 pandemic situation and the EU's upcoming embargo on Russian oil products force investors to be cautious about energy commodities.
Meanwhile, a positive trend was observed in agricultural commodities last week.
Wheat rose 1.2%, corn increased 1.1%, soybeans gained 0.4% and rice grew 1.1%.
Also, cotton rose 0.4%, coffee increased 9.8%, and sugar and cocoa went up 6.6% and 2.3%, respectively.
*Writing by Gokhan Ergocun
