Commodity prices dropped on Thursday, with silver leading the fall. The decline came after investors pulled back from hard assets as global tensions showed signs of easing.

Silver fell sharply, dropping as much as 15%. Oil prices also slipped by more than $1 per barrel. This happened after the news of the talks between the US & Iran.  As tensions cooled, investors reduced their positions in commodities. Many markets had recently reached record highs, driven by strong speculation. On Thursday, that momentum slowed.

Market experts said the mood turned cautious across different asset classes. Losses in one market added pressure to others. Thin trading volumes made the moves sharper. At the same time, the US dollar strengthened and touched a two-week high. A stronger dollar makes commodities more expensive for buyers using other currencies, which can reduce demand.

Gold and silver both moved lower after recent record highs. Analysts said the sharp swings this week show how volatile commodity markets have become. After strong gains, some correction was expected.

Oil Holds Near High Levels

Oil prices fell slightly but remained close to multi-month highs. Investors are closely watching the talks between the US and Iran. There are concerns that any military conflict in the Middle East could affect oil supply from the region.

Copper and Iron Ore Weaken

Copper prices moved further away from last week’s record highs. Demand concerns and rising warehouse stocks weighed on the metal. 

Soybeans were the exception. Prices rose to a two-month high after President Trump said China is considering buying more US cargoes. This gave support to the agricultural commodity even as most other commodities declined.

After rising strongly for some time, the markets have now started to slow down. Investors are looking for updates and the change in the market to grab the best time to invest.