Global commodity prices rallied last week amid growing recession fears triggered by President Donald Trump’s tariff war with China, which rattled markets and weakened the US dollar. The US Dollar Index fell to 99.014—its lowest since April 2022—after dipping below the 100 mark for the first time since July 2023. Analysts warn that the negative consequences of Washington’s protectionist policies will not be easy to reverse.
Safe-haven assets surged in response. Gold hit an all-time high of $3,245.43 per ounce, up 6.6% weekly, while silver climbed 9.1% to $32.3. Platinum and palladium posted modest gains of 2.9% and 0.3% respectively, supported by trade war fears. Base metals also rebounded after Trump’s 90-day tariff pause: copper rose 4.1%, nickel 3%, lead 0.5%, and aluminum 1%. Zinc edged down 0.2%.
Crude oil prices slumped, with Brent dropping 2.3% to $58.22—the lowest since February 2021—amid fears of weakening global energy demand and reports of OPEC+ plans to raise output. Natural gas plummeted 7.7%. Meanwhile, agricultural commodities mostly rose due to supply risks and dollar weakness. Corn and soybean surged 7.8%, wheat gained 4.8%, and rice climbed 3.3%. In contrast, sugar dropped 5.4%, coffee 2.8%, and cocoa 1.5% amid ongoing tariff tensions with Vietnam and West Africa. Cotton prices bucked the trend, rising 5.8%.
