Post by : Meena Ariff

Precious metals emerged as the strongest performers in global commodity markets in 2025, supported by economic uncertainty, geopolitical tensions, and growing expectations of lower interest rates. Silver stood out as the top performer of the year, outperforming major equity indexes and currencies, while gold climbed to record highs.

Silver prices surged by more than 160% during the year, crossing the $80-per-ounce mark for the first time. The rally was driven by tight supply, low inventories, and rising industrial demand. Its recognition as a critical mineral in the United States further strengthened investor confidence. Gold also posted strong gains of over 60%, supported by steady central bank buying and its role as a safe-haven asset.

Other precious metals followed the upward trend. Platinum and palladium recorded solid annual gains as demand remained resilient. Analysts expect precious metals to maintain momentum into 2026, especially as global interest rates are projected to ease.

Industrial metals also delivered strong performances. Copper prices reached record highs, rising nearly 44%, fueled by a weaker U.S. dollar, supply disruptions, and increasing demand from renewable energy and artificial intelligence sectors. Tin prices climbed on supply constraints in Southeast Asia, while aluminium benefited from production limits in China and growing demand linked to the energy transition.

Energy markets, however, faced a challenging year. Brent crude and U.S. crude oil prices declined by around 15% in 2025, weighed down by rising global supply despite ongoing geopolitical disruptions. Oil producers paused output increases for early 2026, but concerns remain over potential oversupply.

Agricultural commodities recorded the steepest declines. Cocoa prices fell nearly 50% after last year’s sharp rally led to weaker demand and increased production. Sugar, coffee, wheat, and corn also ended the year lower due to abundant global supplies. Palm oil and rubber prices declined as favorable weather conditions boosted output while demand remained subdued.

#Business News