Optimism that lasting peace can be achieved in the Middle East led to a decline in the war premium in energy prices, while the decline in oil prices increased expectations that global inflation pressures could ease.
Analysts noted that the possibility of lasting peace in the Middle East could reduce risk premiums not only in oil prices but also in freight, fertilizer and other raw material costs.
In addition to these developments, investors also closely followed the macroeconomic data announced in the USA.
While non-agricultural employment in the US increased by 115,000 people in April, the unemployment rate remained stable at 4.3 percent. The average hourly wage increased by 0.2 percent on a monthly basis and by 3.6 percent on an annual basis.
While the data suggested that the labor market remained robust, the limited trajectory of wage increases supported the view that inflationary pressures may remain under control.
Analysts said U.S. employment data limited concerns about a sharp slowdown in the economy, while modest wage increases did not completely eliminate Fed rate cut expectations.
There was an increase in precious metals other than palladium
With the exception of palladium, precious metals were positive last week due to expectations of an end to the US-Iran war, the easing of oil-related inflation concerns and the weakening of the dollar index.
Analysts noted that optimism over the U.S.-Iran deal came to the fore in precious metals last week and that expectation eased worries about energy-related inflation and high interest rates.
Silver's ounce price found stronger support than other precious metals from the decline in the dollar index and the recovery in risk appetite, as it is both a precious metal and a metal used in industrial production.
With these developments, precious metal prices rose on an ounce basis by 6.5 percent for silver, 3.6 percent for platinum and 2.2 percent for gold, while palladium fell by 2.3 percent.
Base metals were mixed
Base metals were mixed last week on expectations that tensions in the Middle East could ease, the recovery in risk appetite and the impact of product-based supply-demand developments despite the weakening dollar index.
Copper prices posted the strongest rise among base metals last week, driven by near-term geopolitical easing and the long-term demand outlook. Copper continued to be supported by structural demand expectations from areas such as artificial intelligence, data centers, electric vehicles, renewable energy investments and grid infrastructure.
The recovery in risk appetite and purchases of industrial metals also impacted gains in aluminum, zinc and lead.
In contrast, nickel performed negatively due to oversupply concerns. High production from Indonesia and easing global supply outlook continued to put pressure on nickel prices.
Last week, over-the-counter base metals prices in pound terms rose 5.4 percent for copper, 2.6 percent for zinc, 1.9 percent for aluminum and 1.1 percent for lead, while nickel fell 2.4 percent.
While Brent oil fell in value last week, expectations that an agreement could be reached between the US and Iran and oil shipments through the Strait of Hormuz could return to normal contributed to the decline. The decline in the risk of war and supply disruptions led to a decline in the geopolitical risk premium in oil prices.
Analysts said oil prices fluctuated with news of US-Iran talks and the possibility of diplomatic progress added pressure on prices.
On a weekly basis, the barrel price of Brent oil fell 8.1 percent, while the price of natural gas in British Thermal Units (MMBtu) rose 0.3 percent.
Agricultural raw materials were mixed
When it comes to agricultural raw materials, product-related divergences came to the fore last week, resulting from changes in the balance of supply and demand.
Rice prices were supported by positioning in futures markets, supply expectations and supply uncertainties in global grain markets.
The decline in wheat and corn prices came as planting progress in the U.S. was better than expected and investors reduced their positions in agricultural contracts on a weekly basis.
According to the U.S. Department of Agriculture, corn and soybean plantings are above the five-year average. This situation partially limited supply-side concerns and put pressure on wheat and corn prices.
With these developments, prices per bushel on the Chicago Mercantile Exchange rose 8.7 percent for rice and 0.3 percent for soybeans, while they fell 2.8 percent for wheat and 1.9 percent for corn.
Cocoa prices rose sharply last week, driven by purchases resulting from funds closing short positions rather than the fundamental balance between supply and demand. In addition to this development, concerns over new season production in West Africa also supported pricing.
Coffee prices, on the other hand, fell as it was announced that Brazil's coffee harvest in the 2026-2027 season is expected to increase by 11.5 percent compared to the previous season due to favorable weather conditions and maintenance measures by producers. Rising harvest expectations in Brazil, the world's largest coffee producer, put pressure on prices.
According to the Food and Agriculture Organization of the United Nations (FAO), the global food price index rose 1.6 percent monthly to 130.7 points in April and continued its rise in the third month. While the increase in vegetable oil prices was the key factor driving the increase in food prices, the increase in grain prices remained more limited.
In the US, Intercontinental Exchange pound prices rose 0.6 percent for cotton, fell 4.3 percent for coffee and 1.7 percent for sugar, while the price per ton of cocoa ended the week up 17.9 percent.
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