Global commodity market movements during trading on Friday, the end of the week’s trading, reflected a state of cautious balance between divergent factors. These included developments on the supply side, influential US economic data, and investor anticipation of the path for the next phase.
In this context, oil prices recorded a limited gain at settlement, while precious metals, led by silver and gold, continued to achieve notable gains; driven by increasing investment demand and receding inflationary pressures.
Oil Records a Limited Gain at Settlement
Oil prices rose at settlement, supported by concerns about potential supply disruptions. This came amid tightened measures related to sanctioned Venezuelan oil tankers, alongside market monitoring of geopolitical developments related to Eastern Europe.
Gold continues its stable performance as a safe haven in an environment of uncertainty (Getty)
Brent crude futures climbed 1% to close at $60.47 per barrel, while US West Texas Intermediate crude rose 0.9% to $56.66 per barrel. On a weekly basis, the two benchmark crudes declined by about 1%, following losses of nearly 4% the previous week.
Energy sector analysts noted that oil prices “are maintaining limited gains after stabilizing above their lows this week; awaiting greater clarity on geopolitical factors and supply developments.”
Ship-tracking data showed a sanctioned tanker carrying about 300,000 barrels of Russian naphtha entering Venezuelan waters, while three other tankers stopped or rerouted their courses. In contrast, Venezuela allowed two non-sanctioned tankers to sail to their destination, according to informed sources. Data also showed the number of drilling rigs in the US Permian Basin declining to its lowest level since August 2021, which may indicate a potential future slowdown in production.
Silver at All-Time High and Gold Gains
Precious metals markets saw stronger performance, with silver jumping to its highest level ever, supported by rising investment demand and tight supply, while gold continued to achieve weekly gains.
Spot silver rose 2.6% to $67.14 per ounce, after hitting a record level of $67.45 during the session, ending the week with gains of 8.4%.
Spot gold climbed 0.1% to $4338.6 per ounce, recording weekly gains of 1%, while US gold futures rose 0.5% at settlement to $4387.3 per ounce.
Silver has emerged as the most attractive precious metal for investment demand in the current phase (Shutterstock)
A senior trader noted, “Gold and silver typically move in tandem, but silver has led gains recently. As the gap widens, investors may turn to gold to reduce this disparity in the short term.” According to data, silver prices have risen by about 132% since the start of the year, compared to annual gold gains of about 65%, supported by investment demand and declining supply.
US Data Boosts Rate Cut Expectations
Recent US economic data contributed to supporting precious metals prices. Official figures showed US consumer prices rose 2.7% year-on-year in November, a level lower than economists’ expectations of 3.1%.
The US Department of Labor also announced the unemployment rate rose to 4.6% during the same month, its highest level since September 2021, reinforcing market expectations that the Federal
Venezuela
Venezuela is a South American country with a history of indigenous inhabitation before Spanish colonization in the 16th century, leading to its independence in 1811 under Simón Bolívar. It is known for its significant oil reserves and diverse natural landscapes, including Angel Falls, the world’s tallest waterfall. The nation’s cultural heritage blends indigenous, African, and Spanish influences, reflected in its music, art, and festivals.
Eastern Europe
Eastern Europe is a broad geographic and cultural region encompassing numerous countries, each with a distinct history often marked by shifting borders, foreign empires, and the legacy of the Cold War’s Iron Curtain. Historically, it has been a crossroads and often a contested zone between major powers, including the Russian, Austro-Hungarian, and Ottoman Empires. This complex past has resulted in a rich tapestry of languages, religions, and cultural traditions across the area.
Birmingham
Birmingham is a major city in England’s West Midlands region, historically emerging as a global manufacturing and industrial powerhouse during the 18th-century Industrial Revolution. Its growth was fueled by metalworking and innovation, leading to its nickname “the workshop of the world.” Today, it is a diverse, modern metropolis known for its cultural institutions, canals, and extensive post-war redevelopment.
England
England is a country within the United Kingdom with a long and influential history, having been unified under the Kingdom of England in the 10th century. It was the historic core of the vast British Empire and is renowned for its global cultural impact, from the English language and parliamentary system to landmarks like Stonehenge and the Tower of London.
Birmingham’s jewellery quarter
Birmingham’s Jewellery Quarter is a historic area in central England that became a global hub for jewellery production during the Industrial Revolution. It developed in the 18th and 19th centuries, housing hundreds of workshops and factories that specialized in crafting and trading precious metals and gemstones. Today, it remains a working centre for the trade while also being a visitor attraction with museums and preserved Victorian workshops.
Ukraine
Ukraine is a country in Eastern Europe with a rich history dating back to the medieval state of Kyivan Rus. It has experienced periods of independence as well as rule by various empires, before regaining its sovereignty in 1991 following the dissolution of the Soviet Union. The country is known for its diverse cultural heritage, Orthodox Christian cathedrals, and the Black Sea coastline.
US
The United States is a federal republic founded in 1776 after declaring independence from Great Britain. Its history is marked by westward expansion, a civil war over slavery, and its emergence as a global superpower in the 20th century. The nation is defined by its diverse population, democratic institutions, and significant cultural and economic influence worldwide.
Permian Basin
The Permian Basin is a major sedimentary basin located in western Texas and southeastern New Mexico, renowned as one of the world’s most productive petroleum and natural gas regions. Its geological history dates back over 250 million years to the Permian Period, when it was a shallow inland sea whose organic deposits formed the vast hydrocarbon reserves extracted since the 1920s.
US Department of Labor
The US Department of Labor is a cabinet-level agency of the federal government, established in 1913 during the presidency of William Howard Taft. Its mission is to foster, promote, and develop the welfare of wage earners, job seekers, and retirees by improving working conditions, advancing opportunities for employment, and ensuring benefits rights.
