IFA Global Weekly Outlook #1

17 August, 2025

Commodity Trade So Far: Weekly Snapshot

The commodities market this week reflected a mix of resilience and volatility across major assets, as global cues and macroeconomic shifts influenced investor sentiment.

Crude oil saw a notable dip, with Brent prices sliding 1.7% to USD 65.9. Concerns around slowing demand recovery and supply dynamics contributed to the softness, reminding markets that energy still remains highly sensitive to geopolitical and economic data.

In the base metals space, the movement was relatively muted. LME Aluminum eased slightly by 0.1% to USD 2607, while LME Copper edged up 0.1% to USD 9773. This divergence suggests that while industrial demand remains intact, market participants are cautious, weighing weaker economic data against longer-term infrastructure and clean energy demand.

Precious metals, often considered safe-haven assets, witnessed declines as the U.S. dollar and bond yields exerted pressure. Gold dropped 1.8% to USD 3336, while Silver fell 0.9% to USD 38. This highlights the current tug-of-war between inflationary concerns and expectations of tighter monetary policies.

Overall, the week paints a picture of consolidation in commodities, with energy and precious metals underperforming, while industrial metals held steady. As global markets continue to juggle inflation, interest rates, and geopolitical tensions, commodities are likely to remain choppy, offering both risks and opportunities for investors and corporates.