Commodity Prices Surge

(MENAFN) Commodity markets extended their historic momentum into 2026, driven by expectations of a worldwide economic rebound and possible interest rate reductions. At the same time, geopolitical tensions, supply challenges, and trade disputes sustained the robust performance seen last year into January.

Gold experienced a remarkable rise of 12.4% in January, marking its "best monthly performance since November 2009." Other precious metals also advanced significantly, with silver climbing 17.2%, platinum rising 6.2%, and palladium increasing 7% during the same timeframe.

Prices reached new highs: gold surged to "$5,598.09 per ounce," silver hit "$121.7," platinum reached "$2,923.3," and palladium climbed to "$2,168.6 per ounce," its "highest level since October 2022."

Persistent geopolitical tensions contributed to the support of gold prices. These included US strategies concerning Greenland, frictions between Washington and Europe, and ongoing uncertainty surrounding Federal Reserve rate cuts.

Silver prices were bolstered by trade uncertainties related to US President Donald Trump’s "protectionist policies" and doubts about the Federal Reserve's independence. Moreover, silver’s extensive application in solar panels maintained strong demand, while worries that mining output might not satisfy consumption added additional price pressure.

Platinum faced supply constraints as well. Mining activity in South Africa, a key producer, declined due to energy shortages and flooding, reducing output. Simultaneously, the expanding automotive industry, especially in the Asia-Pacific region, intensified demand for both platinum and palladium, further pushing their prices upward.

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