By Burhan Sansarlioglu
ISTANBUL (AA) - An optimistic mood prevailed in the commodity market last week, while prices increased broadly.
An upward trend was observed in the commodity amid concerns related to the monetary policy decisions of the Fed and the banking sector.
Although the Fed increased the policy rate by 25 basis points to the range of 4.75-5% in line with expectations, the dollar depreciated against other currencies and commodities after the decision text and Fed Chair Jerome Powell's statements.
Saying "some additional tightening" would be appropriate to achieve a sufficiently tight monetary policy stance to return inflation to 2% in the text, instead of the previous statement of "tightening expected to continue" was seen as a "pigeon" in the markets.
Analysts also said concerns about the banking system in global equity markets continue.
While there is no significant change in the expectations in the money markets, it is expected that the Fed will cut rates by 100 basis points until the end of the year.
Last week, gold prices dropped by 0.5%, while silver earned 2.8%, platinum 0.3%, and palladium 0.4%.
Amid concerns about the banking sector that started in the US and spread to Europe, especially silver was in high demand as a "safe haven."
The World Platinum Investment Council has predicted that the hydrogen industry may be the sector with the highest demand for platinum by 2040.
Copper increased by 3.7%, lead by 3.1%, and aluminum by 1.9%, while nickel and zinc dropped by 0.7% and 0.2% last week.
While wheat, soybeans, and cotton prices were down last week, other agricultural commodities posted increases.
The price of wheat dropped by 2.9%, soybean 3.2%, and cotton by 1.6%, while corn and rice prices soared by 1.6% and 4%, respectively.
Coffee and cocoa prices were up by 0.8% and 5.2%.
* Writing by Gokhan Ergocun.