Commodity Markets Update: Gold and Silver Surge Amid Global Economic Uncertainty

Gold and Silver Prices Reach New Highs

In recent trading sessions, gold and silver have experienced significant price increases, reflecting heightened investor demand for safe-haven assets amid global economic uncertainties.

Gold Prices Surge

Gold prices have reached a three-month high, driven by easing U.S. inflation and a decline in the U.S. dollar. Spot gold rose 0.1% to $2,991.00 per ounce, after hitting an all-time high of $3,004.86. This marks a 14% gain since the start of 2025, following a 27% increase in 2024. Gold pops above $3,000 per oz for first time in historic safe-haven rally

Silver Prices Climb

Silver prices have also seen substantial gains. The iShares Silver Trust (SLV) is currently trading at $31.59, up 5.3% from the previous close. The intraday high reached $31.65, indicating strong investor interest in the metal.

Oil Prices and OPEC+ Production Decisions

Oil markets are experiencing volatility due to OPEC+’s recent decision to increase crude oil output by 411,000 barrels per day in July 2025. This marks the third consecutive monthly increase. However, concerns persist about whether member countries will meet these production targets and if there will be sufficient demand, especially in Asia, to absorb the increased exports. OPEC+’s crude output hike comes amid tepid Asian oil demand

World Bank Forecasts Decline in Commodity Prices

The World Bank’s latest Commodity Markets Outlook forecasts a significant decline in global commodity prices over the next two years due to weakening global growth and rising trade barriers. Prices are expected to drop 12% in 2025 and a further 5% in 2026, returning to pre-COVID-19 levels observed from 2015 to 2019. While this trend may help moderate near-term inflation, it poses challenges for developing economies reliant on commodity exports. World Bank sees commodity prices falling to pre-COVID levels

Commodity Traders Expand Global Influence

Leading commodity trading houses—Trafigura, Vitol, Gunvor, and Mercuria—have earned over $57 billion in net profits since the onset of the 2022 energy crisis and are aggressively investing these gains to expand their influence across global supply chains. These firms are utilizing profits to diversify into assets such as power plants, petrol stations, and biofuels, while also strengthening their core oil and metals trading operations. Commodity traders snap up assets and tighten grip on global supply chains

Indonesia Considers Nickel Production Cuts

Indonesia, the world’s largest nickel producer, is contemplating reduced nickel ore production to boost prices, which have dropped 40% in the past two years due to oversupply. The government is reviewing mining quotas to stabilize prices, maintaining a careful balance due to its economic dependence on the nickel industry. Indonesia eyes nickel production cuts to support price of ‘unloved’ metal

ADM Focuses on Cost Controls Amid Challenges

Archer-Daniels-Midland (ADM) is focusing on cost control measures as the challenging commodities cycle, which has impacted its profits, is expected to persist into 2025. The global grains trader is contending with low crop prices, uncertainty around biofuels regulations, and potential disruptions due to a possible U.S.-China tariff battle. ADM sees challenges continuing into 2025, focus on cost controls

Cocoa Tops Global Commodities Rally

In 2024, cocoa and coffee emerged as the top-performing commodities due to global supply deficits, particularly from adverse weather conditions affecting key growing regions like West Africa and Brazil. Cocoa prices nearly tripled, driven by crop losses from adverse weather and other factors in top producers Ivory Coast and Ghana. Cocoa tops global commodities rally for 2nd year, steel ingredients struggle on China demand

Investors should remain vigilant and consider these developments when making decisions in the commodity markets.