ISTANBUL
Commodity markets followed a positive course last week despite growing concerns over inflation and global recession thanks to eased perception of risk to some extent.
Rising recession warnings and weak economic data triggered expectations that central banks could ease their hawkish monetary policies.
Risk perception eased somewhat after the UN Conference on Trade and Development and IMF chief Kristalina Georgieva warned that hawkish policies from advanced economies’ central banks could damage the global economy.
On Oct. 3, the Trade and Development Report 2022 released by the UN Conference on Trade and Development (UNCTAD) warned of a policy-induced global recession that would leave developing countries heavily exposed to debt crises.
Precious metals
The price of gold rose 2.1% to $1,695 per ounce last week, fueled by weaker-than- expected US manufacturing data.
The Institute for Supply Management reported last Monday that the US manufacturing PMI unexpectedly fell to 50.9 in September, the lowest since May 2020.
Demand for safe assets was boosted, pushing silver up 5.8%, palladium 1.3%, and platinum 6%.
Energy
The barrel price of Brent oil was up 15% last week, the strongest weekly rise since February after OPEC+ agreed to cut daily production by 2 million barrels starting in November.
The Organization of Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, agreed Wednesday to cut production by 2 million barrels per day (bpd) from the August 2022 required production levels, starting in November.
The move spurred President Joe Biden to announce that the US will release more 10 million barrels of oil from the country’s strategic reserves next month.
The price of natural gas on the New York Mercantile Exchange fell 0.3% last week.
In the over-the-counter market, copper prices followed a flat course, while lead rose 10.6%, aluminum 7.5%, nickel 5.3%, and zinc 1.6%.
Agricultural commodities
Agricultural commodities saw a mixed trend last week.
Wheat traded on the New York Mercantile Exchange fell 4.2% and rice 2%, while corn and soybeans rose 0.8% and 0.1%, respectively.
Cotton lost 1.5% and coffee 1.9%, while cocoa rose 1.9 % and sugar 5.7%.
