Commodities Prices

Commodity prices fell again in July, but the decline was much smaller than in June. Following the collapse of the U.S.-Iran truce, diesel, gasoline and European natural gas prices surged, while Brent crude held broadly steady, helping to offset weakness across the rest of the energy complex. Base metals also edged lower as declines in aluminium, nickel and lead more than offset gains in steel and zinc, while copper remained broadly stable amid expectations of U.S. tariffs on refined copper. Moreover, precious metals retreated as markets increasingly priced in higher-for-longer U.S. interest rates. Agriculture was the only commodity group to post gains, supported by fresh disruptions to key shipping routes after the collapse of the U.S.-Iran truce and an escalation in Russia-Ukraine attacks.

Global commodity prices decreased 0.5% month on month in July, following June’s 10.9% fall.