Commodity market looked for direction last week

Looking for a direction, the commodity market shifted into a fluctuating course last week following two weeks of gains.

The geopolitical risks due to China-Taiwan tensions boosted the demand for safe heaven assets, while at the same time raised concerns about economic activity affecting demand negatively.

The price of major agricultural commodities fell thanks to the resume of grain and fertilizer shipments from the Ukraine for the first time since the onset of Russia's war on Ukraine.

Metal prices dove as China's escalating real estate crises imperiled demand from construction activities, which account for more than half of the metal’s consumption.

Bank of England's rate hike and the strong unemployment figure in the US fueled expectations that Federal Reserve would continue to increase the aggressive interest rates, which also created selling pressure in the commodity market.

The Bank of England on Thursday hiked interest rates 50 basis points to 1.75%, the biggest rise in 27 years, as the UK faces the highest level of inflation in 40 years.

The US economy added 528,000 jobs in July, well above market estimate, while the unemployment rate fell to 3.5%, the Labor Department announced on Friday.

With these developments, gold gained 0.5% and platinum 4.2% last week, while silver lost 2.3%.

A fluctuating course was seen in palladium.

The ounce price of gold surpassed $1,790, hitting a-month-high.

In the over-the-counter market, copper rose 0.4%, lead 0.8% and zinc 5.7%, while aluminum and nickel lost 1.5% and 1.4%, respectively

Brent oil ended the week with a 9.2% loss and natural gas lost 2% on the New York Mercantile Exchange.

Traded on the Chicago Mercantile Exchange, wheat dropped 3.9%, corn 1.8%, soybeans 4.1%, whereas rice increased 2.7%

Cotton and coffee decreased 0.7% and 3.8%, respectively, and sugar and cocoa climbed 2.3% and 0.6%, respectively.