Commodity Markets Update: Gold Hits Record Highs Amid Global Uncertainty

Gold Prices Reach Historic Highs

Gold has recently achieved unprecedented levels, with spot prices surpassing $3,000 per ounce. This surge is largely attributed to investors flocking to safe-haven assets in response to global economic uncertainties and geopolitical tensions. Notably, on March 14, 2025, spot gold rose 0.1% to $2,991.00 an ounce, after hitting an all-time high of $3,004.86. Source

Silver Prices Experience Volatility

Silver has also seen significant price movements. On March 17, 2025, silver prices dipped by Rs 100 to Rs 1,02,900 per kilogram. The price of 22-carat gold fell Rs 10, with ten grams of the yellow metal selling at Rs 82,190. Source

Oil Prices Fluctuate Amid OPEC+ Decisions

Oil markets have been volatile, influenced by OPEC+ supply decisions and global demand concerns. Brent crude futures fell by 9 cents, or 0.1%, to $72 per barrel, while U.S. West Texas Intermediate crude futures fell by 4 cents, or 0.1%, to $68.27 per barrel. Source

China’s Commodity Import Trends

China’s commodity imports have shown mixed trends. In 2024, crude oil imports decreased by 2.1% to 553.42 million metric tons, influenced by high prices and a shift to New Energy Vehicles (NEVs). Conversely, natural gas imports rose nearly 10% to 131.69 million tons, driven by LNG and pipeline supplies. Source

Indonesia Considers Nickel Production Cuts

Indonesia, the world’s largest nickel producer, is contemplating reducing 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, balancing economic dependence on the nickel industry with the need for price support. Source

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. Source

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 diversifying into assets such as power plants, petrol stations, and biofuels, while also strengthening their core oil and metals trading operations. Source

Singapore Tightens Commodity Trading Regulations

Singapore has taken a strong stance on misconduct in its commodity trading sector following multiple scandals during the Covid-19 pandemic. Measures include digitizing trade documentation and establishing a trade finance registry to prevent asset duplication, aiming to rebuild credibility and stay competitive against rising hubs like Dubai. Source

Archer-Daniels-Midland Focuses on Cost Controls

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. Source

SPDR Gold Shares ETF Performance

As of May 31, 2025, the SPDR Gold Shares ETF (GLD) is trading at $303.60, reflecting the recent surge in gold prices. The fund has experienced a slight decrease of 0.65% from the previous close, with an intraday high of $304.85 and a low of $301.52.

iShares Silver Trust Performance

The iShares Silver Trust (SLV) is currently priced at $30.00, down 1.02% from the previous close. The fund’s intraday high reached $30.28, with a low of $29.79, indicating volatility in the silver market.

United States Oil Fund Performance

The United States Oil Fund (USO) is trading at $67.15, a slight decrease of 0.07% from the previous close. The fund’s intraday high was $68.07, with a low of $66.10, reflecting fluctuations in the oil market.

United States Natural Gas Fund Performance

The United States Natural Gas Fund (UNG) is currently at $15.71, down 1.72% from the previous close. The fund’s intraday high reached $16.19, with a low of $15.63, indicating volatility in the natural gas market.

Invesco DB Agriculture Fund Performance

The Invesco DB Agriculture Fund (DBA) is trading at $26.70, up 0.53% from the previous close. The fund’s intraday high was $26.75, with a low of $26.60, reflecting movements in the agricultural commodities market.

Investors are advised to stay informed and consider these developments when making investment decisions in the commodity markets.