Hawkish Fed outlook weighs on metals as Brent gains
Industrial and precious metals fell amid growth worries, while supply concerns lifted Brent and weather forecasts supported coffee and sugar.
Key takeaways
- Silver fell 6.3% this week, while gold declined 0.7%.
- December Brent crude rose 4.75% as Middle East conflicts sustained supply concerns.
- Coffee prices climbed 6.5% and sugar gained 3% on production concerns.
Commodities were mixed this week as hawkish Federal Reserve expectations weighed on metals. Silver fell 6.3%, while December Brent crude rose 4.75%.
Silver and platinum each touched three-month lows, at $55.40 and $1,598.20 an ounce, respectively. Palladium fell to $1,092 an ounce, its lowest level since August 2025. Gold declined 0.7%.
Prices of industrial metals also fell. Aluminum and zinc each lost 2.3%, nickel dropped 2.2%, copper declined 2.1% and lead slipped 0.2% in over-the-counter trading.
The report linked metals’ weakness to expectations that high U.S. inflation could keep borrowing costs elevated for longer, alongside concerns about global growth. It also cited lower expected demand for traditional cars as a factor in platinum and palladium’s declines. A preliminary agreement at Chile’s Escondida mine was expected to avert a strike, easing supply concerns for copper.
Ongoing Middle East conflicts and concerns about oil supply supported Brent. U.S. natural gas fell 3.2% amid expectations of mild weather and high inventories. In agriculture, coffee rose 6.5% and sugar gained 3% on forecasts that El Niño could constrain Brazilian production, while soybean, wheat and corn prices fell.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
