Several commodities closed last week with declines
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The ongoing selling pressure in the commodity market continues due to the debt ceiling crisis in the US, uncertainties regarding Fed, and recession concerns.
Last week, the discussions between US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy regarding the debt limit crisis dominated the markets.
Biden and McCarthy announced they agreed that default is not an option, which eased the selling pressure in the markets.
On Friday, McCarthy said progress was made in the debt limit talks and that the work will continue, while the macroeconomic data announced in the US increased the uncertainties regarding the Fed's monetary policy.
While the US economy grew 1.3% in the first quarter of this year above expectations, the rise in the personal consumption expenditures price index was recorded as 4.2% in the same period.
Personal consumption expenditures in the country increased by 0.8% on a monthly basis in April, more than expected, and the core personal consumption expenditures price index, which the Fed considers an indicator of inflation, also rose by 4.7% year-on-year.
It is predicted that the possibility that the Fed will increase interest rates by 25 basis points next month reached 64% in markets.
Analysts stressed that inflation in the US did not slow down at the desired pace and economic activity remained strong, which may increase the interest rate hike.
Last week, the US 10-year bond yield ended the week at 3.8, with an increase of 3.3%.
The ounce price of gold dropped by 1.5% to $1,947 while silver lost 2.3%, palladium 5.6%, and platinum 3.7%.
Base metals' prices declined due to recession concerns in Asia.
Copper price, which saw its lowest level since November 2022 last week, ended the week with a decline of 1.5%.
Lead lost 0.4%, aluminum 0.9%, nickel 1%, and zinc 6.7%.
According to analysts, the slowdown trend in China, which has been going on for a while, suppressed the prices of metals such as copper and iron used in the manufacturing industry.
A mixed course was observed in energy commodities.
With the effect of the Saudi Arabian authorities warning those who opened a selling position in oil, Brent oil ended the week at $77.2 with an increase of 1.9%.
Agricultural commodities saw a fluctuating course last week.
Prices of wheat rose by 2%, corn 9.1%, and soybeans by 2.2% last week.
Meanwhile, cotton's price dropped by 7.4%, coffee by 5.8%, sugar 1.4%, and cocoa by 2.2%.
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