Commodity prices show varied performances during Christmas week
Date
12/31/2024 3:49:47 AM
(MENAFN) Commodity prices showed a mixed trend during Christmas week, as markets sought direction amid political developments. The high-risk sentiment was evident as investors remained cautious ahead of President-elect Donald Trump’s inauguration and his promised tariff hikes on China. The uncertainty surrounding his policies and the geopolitical landscape kept market participants on edge.
The US 10-Year Futures bond reached its highest level since May, rising to 4.26 percent after the Federal Reserve signaled that the pace of rate cuts next year might be slower than anticipated. The US Dollar Index also remained strong, hovering near its nearly two-year high, peaking at 108.3 before settling at 108.0.
Analysts expect that geopolitical tensions, alongside central bank gold purchases, will continue into the new year, especially with Trump’s return to office. This political uncertainty is likely to persist, influencing the precious metals market. Gold prices dropped by 0.3 percent per ounce, driven by rising bond yields and market focus on Trump’s policy and the Fed's future actions. Silver and palladium also saw declines, falling by 0.6 percent and 0.9 percent, respectively, while platinum gained 0.6 percent per ounce.
In the base metals market, copper rose by 0.8 percent following China's announcement to reduce import tariffs on recycled copper and aluminum raw materials starting January 1. This decision, aimed at boosting imports of high-quality products and expanding domestic demand, coincides with the China-Maldives Free Trade Agreement coming into effect. Additionally, El Salvador’s Legislative Assembly lifted a seven-year ban on metal mining, a move supported by President Nayib Bukele to stimulate economic growth, though it faced criticism from environmental groups.
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