(MENAFN) Commodity markets rallied last month as Federal Reserve interest rate reductions and diminishing trade hostilities between Washington and Beijing fueled investor appetite, though geopolitical volatility remains a critical price driver.

Gold advanced 3.7% last month, reaching a record $4,381.55 per ounce, while silver jumped 4.3% to an all-time peak of $54.7 per ounce. Platinum touched its strongest level since February 2013 at $1,734 per ounce.

The US Dollar Index's rebound and investor profit-taking pressures drove gold back from record territory, while safe-haven demand, robust industrial consumption, and persistent supply constraints propelled silver higher, with shrinking production bolstering platinum.

Aluminum soared 7.8% driven by expanding deployment in the global green transition and accelerating demand for renewable energy infrastructure and electric vehicle manufacturing, while zinc climbed 3.4% amid dwindling inventories on the London Metal Exchange. Copper gained 5.3% and lead 1.8% per pound, while nickel slipped 0.3%.

Natural gas exploded 24.9% on supply shortage fears across northern territories as temperatures plummeted with winter's arrival, while Brent crude oil declined 2.2%.

Soybeans surged 11.3% per bushel following the meeting between US President Donald Trump and Chinese President Xi Jinping. Wheat advanced 5.1% per bushel on heightened Chinese purchasing, corn climbed 3.9%, tracking soybean strength, and rice tumbled 8.1%.

Coffee struck a historic pinnacle of $4.3795 per pound, rising 4.6% throughout the month on supply anxieties, anticipated tariffs on Colombia, and depleting coffee inventories. Sugar reached its weakest point since October 2020 at $0.1407 per pound, plunging 14% on robust production forecasts in Brazil, Thailand, and India.

Ole Hansen, head of commodity strategy at Saxo Capital, told Anadolu that gold's "extraordinary rally" had entered a cooling.

"While near-term momentum has stalled, the fundamental reasons for holding gold remain intact—only the timing of the next advance, in our opinion, is uncertain," he said.

Hansen stated that despite Fed Chair Jerome Powell's current cautious stance, macro data show the next move of the bank will be towards easing.

"A softening US labor market and slowing nominal growth will likely bring additional cuts into 2026, setting the stage for renewed gold strength," he said.

"Central banks, led by emerging-market institutions seeking reserve diversification, are maintaining a strong appetite for bullion," he added.

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