Commodities Prices

In February, commodity prices grew for the second consecutive month. Concerns regarding a U.S.-Iran war pushed up the price of crude and refined oil products. Precious metal prices also rose, with gold rising due to strong safe-haven demand amid uncertainty following the Supreme Court’s ruling on U.S. import tariffs, plus rising geopolitical frictions in the Middle East. In contrast, base metal prices declined, as a stronger dollar weighed on commodity prices in early February, while lower activity due to the Lunar New Year holidays in China added to the downward pressure. Meanwhile, agricultural prices hovered close to January’s average, with ample supplies of cocoa, coffee, cotton and sugar offsetting improving demand expectations for soybeans and wheat.

Commodities prices increased 3.3% month on month in February, following January’s 4.9% rise.