Precious metals were the strongest performers among commodities this year, with silver outperforming most major stock indexes and currencies, while gold reached record highs due to economic and geopolitical concerns. Industrial metals also gained significantly in 2025, with copper hitting all-time highs, although cocoa, sugar, and crude oil were among the biggest losers.
Looking ahead, analysts expect precious metals to continue rising in 2026 as interest rates are likely to fall, while agricultural and energy commodities may see limited growth due to rising supplies and weak demand. Tim Waterer, chief market analyst at KCM Trade, said demand for metals remains solid from both industrial and retail buyers, and the key factors driving central bank demand and investor positioning ahead of lower US rates remain unchanged.
Silver rose 161% in 2025, surpassing $80 per ounce for the first time, while gold increased 66%. Silver benefited from being classified as a critical US mineral, supply shortages, and low inventories, while gold stayed strong due to ongoing central bank purchases. Platinum and palladium are also expected to post strong annual gains. BNP Paribas commodities analyst Jason Ying noted that the upside for precious metals continues as many of this year’s risks carry into 2026.
In the oil market, Brent crude and US West Texas Intermediate crude fell about 15% in 2025, with Brent heading for its longest annual losing streak ever, weighed down by rising supplies.
Energy markets faced losses despite supply disruptions caused by attacks on Russian energy infrastructure and US measures targeting Venezuelan oil. OPEC+ paused oil output increases for the first quarter of 2026 after releasing 2.9 million barrels per day since April 2025. Morgan Stanley’s global oil strategist, Martijn Rats, said if prices fall significantly, OPEC+ may cut production, but if prices hold steady, they will likely continue to unwind the cuts.
Copper on the London Metal Exchange reached an all-time high of $12,960 this week, marking nearly a 44% gain in 2025. A weaker US dollar, growing demand from artificial intelligence and renewable energy, and mine output disruptions fueled the rally. Tin also rose due to supply disruptions in Myanmar and tighter flows from Indonesia, while aluminium gained 17%, supported by China’s smelting capacity limits and increasing demand from energy transition technologies. Iron ore traded on the Dalian Commodity Exchange remained strong due to resilient demand, despite falling crude steel output in China and support from Beijing’s relaxed homebuying rules. Coking coal, a steelmaking ingredient, fell this year.
Cocoa was the biggest loser of 2025, dropping 48% after a sharp rise the previous year reduced demand and increased supply. Cocoa had been one of the top-performing commodities in 2024, with New York prices rising 178%, mainly due to poor crops in West Africa. Raw sugar and Robusta coffee also fell, losing about a fifth of their value in 2025.
Chicago soybeans are set to finish 2025 positively, as China resumed imports from the US following improved trade relations, offsetting earlier losses from trade tensions. Wheat and corn are expected to finish weaker due to ample global supplies. Malaysian palm oil is down 9% in 2025 because of abundant supply but may find support from Indonesian biodiesel mandates. Rubber also dropped 9% as better weather in Thailand increased supply, while weak tyre demand from the automobile industry kept prices under pressure.
