Commodity prices show varied trends amid global uncertainties
Date
1/7/2025 12:32:11 AM
(MENAFN) Commodity prices ended last week on a mixed note, influenced by persistent global political and economic instability. Precious metals experienced notable gains, while concerns about US President-elect Donald Trump’s policies and ongoing geopolitical tensions continue to elevate risk perceptions globally.
The US Federal Reserve is projected to make two interest rate cuts this year, with the upcoming Federal Open market Committee (FOMC) meeting expected to offer further clarity on its monetary policy direction.
Last week, the US Dollar Index reached 109.1, its highest point since November 2022. A stronger dollar raises the price of dollar-denominated commodities, potentially dampening their demand. Meanwhile, the yield on the 10-year US Treasury bond closed at 4.60 percent.
Despite a strengthening dollar, precious metals recorded increases last week as their safe-haven status became more attractive amid prevailing uncertainties.
Gold prices climbed by 0.6 percent per ounce, as higher demand for risk hedging counterbalanced the rising costs associated with holding non-yielding assets.
China's gold imports via Hong Kong surged in November, doubling from October to 33,074 metric tons (around 36,455 short tons), marking the highest monthly volume in seven months.
Silver rose by 0.8 percent, while palladium and platinum saw gains of 1.3 percent and 2.1 percent per ounce, respectively.
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