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Commodities rallied last week

Commodities enjoyed strong hikes last week fueled by growing expectations that major central banks will soon end the tightening cycle.

US Federal Reserve officials considered a smaller interest rate increase last month, according to the central bank's minutes released last Wednesday.

The Fed raised its benchmark interest rate on March 22 by 25 basis points, carrying the federal funds rate to between 4.75% and 5% -- the highest since May 2006.

The Fed expects the recent banking turmoil to push the nation's economy into "a mild recession" later this year.

"Given their assessment of the potential economic effects of the recent banking-sector developments, the staff's projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years," the minutes said.

Data released last week that came in below market forecast boosted expectations over central banks' aggressive rate hike is coming to an end.

The annual consumer inflation in the US came in at 5% in March, significantly easing from 6% in February, the latest data showed last week.

US annual producer inflation dove to 2.7% in March, down from February's upwardly revised figure of 4.9%.

Weaker demand for the US dollar also cheered the commodity market.

The dollar index, maintaining its downward trend for the fifth week in a row, closed the week at 101.6, after testing the one-year-low of 100.8.

Despite seeing its highest level since March 9, 2022, gold fell 0.2% to end the week at $2,048.73 an ounce.

The price of silver rose by 1.7%, palladium 2.5%, and platinum 3.7% last week.

In the over-the-counter market, copper increased by 2.6%, lead 3%, aluminum 2%, nickel 6.9%, and zinc by 1.8%.

Traded on the Chicago Mercantile Exchange, wheat prices rose by 2.5% and rice 4.5%, while corn decreased by 1.2% and soybeans by 1.7%.

Source: Anadolu Agency