Commodities Prices

August’s increase was the fastest since March, at the outset of the U.S.-Iran conflict, with prices rising for all four commodity groups. Energy prices kicked higher as the collapse of the U.S.-Iran truce led to renewed disruption to Middle East energy flows. Precious metal prices gained from a weaker U.S. dollar and rising investor concerns over global debt and fiscal sustainability weighing on demand for government bonds. Base metals benefited from supply tightness plus strong underlying demand linked to AI infrastructure and the green energy transition. Finally, agricultural commodities rose in price due to adverse weather in key producing regions amid El Niño, strong biofuel demand and intensifying strikes between Russia and Ukraine. 

Global commodity prices increased 4.9% month on month in August, following July’s 0.5% fall.