Commodity markets end turbulent 2024 amid rate cuts, geopolitical tensions, recession fears
(MENAFN) Commodity markets concluded a difficult 2024 characterized by notable oscillations fueled by rate reductions, geopolitical tensions, political unpredictability in the US, and concerns about a worldwide recession.
The main causes of last year's price spikes were China's attempts to boost its economy, its retaliation against US sanctions, expectations of increased demand after the Fed's rate cuts, and international weather events.
Concerns about a slowdown in the US Economy caused a number of commodities to decrease, resulting in historic selling pressure.
The markets were adversely affected by the Fed's probably slower rate decreases and China-related demand concerns, even though geopolitical threats drove several commodities prices up.
US macroeconomic data, according to analysts, indicated that the economy was still strong.
Following President-elect Donald Trump's victory in the November election, the US dollar appreciated, increasing demand for the currency.
Asset prices were under pressure from rising US Dollar Index values and market expectations that interest rates would remain higher than forecasts after Trump's triumph.
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