Precious and base metals fell broadly this week, with silver down 6.3 percent, platinum 3.4 percent, palladium 3.2 percent and gold 0.7 percent, as investors weighed the outlook for US interest rates alongside signs of softer industrial and consumer demand.
Precious metals under pressure
High US inflation reinforced expectations that the Federal Reserve would keep borrowing costs elevated for longer, a view that weighed on gold even as bond yields and the dollar index fell over the week. Markets do not expect a rate increase this month, but hawkish expectations for later meetings persisted. The federal funds rate stood at 3.88 percent as of 18 October 2026, in force since 15 October.
Silver touched a three-month low of $55.4 an ounce and platinum a three-month low of $1,598.20, pressured by global growth concerns and forecasts of weaker demand for traditional cars. Palladium fell to $1,092 an ounce, its lowest level since August 2025.
Base metals mixed to lower
In over-the-counter trading, aluminum and zinc each fell 2.3 percent over the week, nickel declined 2.2 percent and copper slipped 2.1 percent, while lead edged down 0.2 percent. Increased aluminum output in Indonesia eased supply concerns, and weaker demand in the global stainless steel sector weighed on nickel. A preliminary agreement with workers at the Escondida copper mine in Chile is expected to avert a possible strike.
Energy and agriculture diverge
December-delivery Brent crude gained 4.75 percent over the week on continued conflict in the Middle East, while New York natural gas fell 3.2 percent. At the Chicago Board of Trade, soybeans dropped 2.4 percent, wheat 1.7 percent and corn 1.2 percent, while rice rose 2.2 percent.
On the Intercontinental Exchange, coffee jumped 6.5 percent and sugar rose 3 percent, with El Nino expected to weigh on Brazil’s coffee and sugar output. Cotton fell 0.7 percent, while cocoa gained 0.4 percent per ton as grinding increased in Europe and Asia.
Data: FRED — St. Louis Fed
