ISTANBUL
In the commodity markets, a positive trend was seen last week dominated by increases.
With some statements from the US Federal Reserve officials, the possibility weakened of a 100 basis point interest rate hike at the July meeting -- and directed investors to commodities.
A positive trend was also observed in the global stock markets, with the majority of the US companies' profits exceeding expectations last week.
With these developments, the ounce price of gold ended the downward trend for five consecutive weeks and rose to $1,722 -- with a 0.8% gain last week.
Last week, palladium gained 10.7% and platinum 2.8%.
Also, copper gained 3.5%, aluminum 4%, lead 2.7%, zinc 2.5% and nickel 14.2%.
Energy commodities
Last week, there was an upward trend on the energy side as well.
Brent oil gained 1.2% and natural gas traded on the New York Mercantile Exchange gained 18.3%.
The weakening dollar index and concerns about the contraction in supply were effective in the rise in prices.
Speaking at the Jeddah Security and Development Summit, which was held with the participation of President Joe Biden and leaders from nine Arab countries, Saudi Crown Prince Mohammad Bin Salman stated that his country had decided to increase oil production to 13 million barrels per day, as it had previously announced, and that they do not have any additional capacity.
The crown prince did not reveal a timetable for Saudi Arabia's plan to increase oil production by more than one million barrels.
However, Saudi Energy Minister Abdulaziz bin Salman had pointed to the beginning of 2027 for this target in his statement in May.
Strong demand signals in Asia and data showing that gasoline demand in India rose to record levels in June -- despite high prices -- also supported the upward movement in prices.
Natural gas prices, on the other hand, were affected by the increasing air temperatures in the US, which increased the demand for natural gas-operated air conditioners, despite the reduction of concerns about supply with the start of gas flow from the Nord Stream 1 pipeline.
Agricultural commodities
Last week, on the agricultural side, a mixed course was observed.
Wheat traded on the Chicago Mercantile Exchange fell 2.3%, corn 6.8%, soybeans 2%, while rice increased 2.1%.
With the agreement signed between Türkiye, Russia, Ukraine and the UN hosted by Türkiye, which will ensure the safe shipment of grains and foodstuffs from Ukraine, significant decreases were seen in agricultural commodities.
Increasing concerns about production due to global heat, on the other hand, caused an increase in rice prices.
Last week, cotton increased by 2.8%, coffee by 3.5%, sugar by 4.7% and cocoa by 1%.
The increase in reaction purchases after the decline in the dollar index caused an increase in cotton prices.
The increase in coffee exports in Brazil also affected coffee prices positively.
The interest rate hikes by the world's leading central banks continued to negatively affect the sugar market.
*Writing by Gokhan Ergocun
