Commodities Surge 4.3% as Gold Shines and Agriculture Rebounds

Commodities rose 4.3% last month, performing better than stocks (+3.1%) and bonds (+1.1%). Gold led the way, reaching a record high of $2,950 per ounce and helping precious metals jump 7.2%. Investors bought gold because they’re worried about new tariffs, and central banks are purchasing gold at more than twice their 2012-2021 average.

Farm products grew 6.6% due to bad weather in South America. Wheat prices went up 8.7% after poor harvest forecasts in Argentina and Europe, while coffee prices climbed because of drought in Brazil threatening crops.

Industrial metals increased 2.1% despite new 25% U.S. tariffs on steel and aluminum. Energy markets saw smaller growth at 2.2%, with oil prices falling because of uncertainty about the new administration’s policies. With tariff changes and unpredictable weather affecting markets, commodity prices will likely continue to fluctuate.