Newsletters
Commodity prices carried their record momentum into 2026, supported by expectations of a global economic recovery and potential interest rate cuts, while geopolitical risks, supply constraints and trade tensions extended gains seen last year into January.
Precious metals led the surge. Gold rose 12.4% in January, its strongest monthly performance since November 2009. Silver gained 17.2%, platinum climbed 6.2% and palladium advanced 7%.
Gold reached $5,598.09 per ounce, while silver rose to $121.7, platinum to $2,923.3 and palladium to $2,168.6 per ounce, its highest level since October 2022.
Gold prices were supported by geopolitical tensions, including US plans related to Greenland and strains between Washington and Europe, as well as uncertainty over the timing of Federal Reserve rate cuts.
Silver prices were also bolstered by trade uncertainties linked to U.S. President Donald Trump’s protectionist policies and concerns over the Fed’s independence.
Strong demand from the solar energy sector continued to support silver, while worries that mine output may fail to meet demand added further upward pressure.
Supply constraints were also evident in platinum markets. Reduced mining activity in South Africa, one of the world’s largest producers, due to energy shortages and flooding, weighed on supply, while rising demand from the auto industry, particularly in the Asia-Pacific region, lifted both platinum and palladium prices.
Among base metals, copper rose 5% to $6.60 per pound amid supply concerns and sustained global infrastructure investment. Strong flows of metal into the United States fueled worries over tighter supply in Asia and Europe.
Copper was further supported by recovery expectations, rate-cut forecasts and concerns that tariff-driven shipments to the US could disrupt supply elsewhere. A strike at Chile’s Mantoverde mine added to supply risks.
Aluminum gained 5.7% per pound on expectations of growth and recovery in China, where demand remains strong in the automotive and household appliance sectors.
China is expected to maintain internal stimulus measures this year, supporting domestic demand. Tariff concerns, sanctions on Russia and supply-side risks also underpinned prices.
Nickel rose 5.2% per pound despite global oversupply, driven by rising production risks in Indonesia. Demand from battery production and stainless steel manufacturing, along with Chinese investment in local metal markets, supported prices.
In the energy sector, Brent crude climbed 14.5% per barrel amid heightened geopolitical tensions. Natural gas traded on the New York Mercantile Exchange rose 18.1% to $7.8270, its highest level since September 2022, as temperatures remained well below seasonal norms across much of the Northern Hemisphere.
Agricultural commodities showed mixed performance. Wheat rose 6.1% per bushel due to production concerns linked to cold weather in North America. Corn fell 2.7% on expectations of higher global output. Rice gained 11.1% on export growth and demand expectations, while soybeans rose 1.6% on forecasts of stronger Chinese demand from Brazil.
Cotton declined 1.2% amid lower production forecasts compared with the previous month. Sugar fell 2.1% on high production estimates and demand concerns, while coffee slipped 4.7% due to forecasts of increased rainfall in Brazil.
Cocoa prices dropped sharply, falling 31.3% per ton to their lowest level since November 2023. Favorable weather conditions in West Africa are expected to boost harvests in the Ivory Coast and Ghana in February and March, with farmers optimistic about crop quality.
Zafer Ergezen, a futures and commodity markets expert, said severe cold and heavy snowfall in the United States pushed natural gas prices higher in January, along with declining storage levels.
Ergezen said rising Brent crude prices also supported natural gas, while prices in Europe remained relatively stable despite colder-than-average winter conditions.
“The biggest difference between the U.S. and Europe is probably the very full storage facilities in the latter,” he said.
“After the Russia-Ukraine war, with Russia cutting off gas supplies, Europe invested heavily in storage while signing contracts with both US and Middle Eastern gas suppliers.”
He added that natural gas prices are likely to ease as temperatures rise in the United States.
Set as preferred source
Set as preferred source
2 min read
1 min read
