Commodity markets plummeting with central banks' aggressive moves

Commodity markets plummeted last week with central banks' aggressive moves in their monetary tightening policies.

After US consumer inflation climbed to 8.6% in May, its fastest annual increase since December 1981, the Federal Reserve is now expected to make higher interest rate hikes.

Although the Fed is widely anticipated to hike rates another 50 basis points on Wednesday and later in its July meeting, it could make a 75 basis points of rate hike in September.

In Europe, annual inflation climbed to 8.1% in May, hitting a record high for the seventh consecutive month. The European Central Bank indicated last week that it could start making interest rate increases in July.

In the UK, the Bank of England is also expected to continue its interest rate increases on Thursday, which would be its fifth consecutive rate hike in order to tame consumer inflation that climbed to 9% in April.

Major central banks' aggressive monetary tightening has increased recession risks in global economy and investors move towards the US dollar and some precious metals as safe haven assets.

Last week, the price of gold gained 1.1%, while silver fell 0.2%, palladium lost 2.1%, and platinum plummeted 4%.

The price of copper increased 0.8% last week; however, lead fell 0.3%, aluminum dove 3.4%, nickel lost 0.2%, and zinc declined 3.6%.

International oil benchmark Brent crude saw its price decreased 0.2% last week.