SINGAPORE, Dec 31
In the world of commodities, precious metals have really stood out this year. Silver has outdone most major stock indices and currencies, while gold reached new heights due to ongoing economic and geopolitical uncertainties.
Industrial metals also experienced significant gains in 2025, with copper soaring to record levels. On the other hand, cocoa, sugar, and crude oil saw notable declines.
Analysts suggest that there may still be room for precious metals to grow in 2026, especially as expectations for lower interest rates loom. However, the picture isn’t as bright for agricultural and energy products, mainly due to rising supply coupled with slowing demand affecting potential gains.
A chief market analyst noted, “Demand for metals looks strong on both the industrial and retail fronts.” He emphasized that key drivers like central bank demand and investor positioning should remain solid as the U.S. is expected to reduce interest rates in 2026.
This year, silver increased by 161%, crossing the $80 per ounce mark for the first time, while gold rose by 66%.
Silver’s rise has been supported by the U.S. designating it as a critical mineral, along with persistent supply constraints and low inventories. Gold benefits from continued purchasing by central banks.
Platinum and palladium have also seen considerable annual increases.
“With many risks still in play until 2026, we believe precious metals could continue their upward trend,” a commodity analyst stated.
Focus on OPEC+ in the Oil Market
Oil prices, including Brent crude and U.S. West Texas Intermediate, have dipped around 15% this year, with Brent facing its longest annual decline on record due to increasing supplies.
Energy markets have struggled despite some disruptions from geopolitical events, such as Ukraine’s impact on Russia’s energy infrastructure and U.S. actions targeting Venezuelan oil.
The OPEC+ group has decided to halt oil production increases until the first quarter of 2026, following a release of approximately 2.9 million barrels per day since April 2025.
“If prices drop significantly, OPEC+ is likely to implement production cuts,” a global oil strategist mentioned. “If current prices appear favorable, we may see some easing of these cuts after the first-quarter pause.”
Track Copper Prices and Chinese Demand
This week, copper prices on the London Metal Exchange hit an all-time high of $12,960, indicating a nearly 44% rise for 2025 fueled by a weakened dollar, increased demand from AI and renewable energy, and interruptions in mine production.
Tin also experienced a surge, largely due to supply issues in Myanmar and logistical difficulties from Indonesia. Aluminum climbed 17% thanks to limited smelting capacity in China and growing demand from energy transition sectors.
Despite a decrease in crude steel production in China and easing housing purchases in major cities, iron ore remains steady due to resilient demand. Conversely, coking coal, essential for steelmaking, has not fared as well this year.
Ruined Agricultural Market
Cocoa faced the largest drop in 2025, falling 48% after a strong previous year, due to reduced demand and an increase in supply of chocolate ingredients.
Cocoa had performed remarkably well in 2024, where prices surged 178% owing to poor harvests in its leading production area, West Africa.
Raw sugar and Robusta coffee are also under pressure, potentially losing about 20% of their value by 2025.
Chicago soybeans, however, might finish strongly as China has begun resuming imports from the U.S., easing prior trade tensions.
Wheat and corn are anticipated to close weak because of ample global supplies.
Benchmark Malaysian palm oil is projected to decline 9% in 2025 due to the significant supply, although it may find support from Indonesia’s biodiesel mandate.
Rubber prices fell 9% as demand dwindled from the automotive sector, but an increase in supply due to improved weather conditions in Thailand has been noted.
