Little time likely for Big Gains

Published: 22 January, 2015 14:30

The markets for any commodity are always changing; sometimes with great rapidity.

This week, the oil market has seen a very brief, nervous upsurge in prices due to uncertainties surrounding all energies. The death of King Abdullah of Saudi Arabia on Friday has increased the nervousness felt by many.

For example, Brent crude futures reached a high mark of $49.80USD a barrel early in the day, then slowed to $49.30USD a barrel by 0650 GMT. This marked a trading change of upward at 78 cents.
Read the full news post >>

Continuing Eurozone Woes Hit Commodity Markets

Published: 12 October, 2014 13:58

Dollar strengthening hits EU commoditiesEurope could be facing a return to recession, according to IMF boss Christine Lagarde, with even the German economy, usually considered to be the powerhouse of the Eurozone, falling short of expectations. British Chancellor of the Exchequer, George Osborne, also added a note of caution that the UK economy could also be affected by another downturn in Europe.

Stock and commodity markets responded negatively during early October, with oil being particularly hard hit as the Brent benchmark dropped to a four-year low during early trading on the 10th, hitting $88.40 before rebounding slightly.

Although partly driven by declining demand from a moribund Europe, increases on the supply side are also causing some disruption.
Read the full news post >>

Investor appetite is on the upswing!?

Published: 22 August, 2014 12:47

In the recent commodity trading news, is seems as if those allured by the profit of gold may be in for a disappointing return; at least for the short term.

As this benchmark indicator hints at other financial trends, recent developments in regards to housing sector data in the United States alongside a bullish dollar have caused the yellow metal to take a slightly bearish outlook.

Figures have shown that investor appetite is on the upswing; thus fueling their ability to enter into open trading positions. As always, the inverse relationship to the dollar is another reason for slight concern.
Read the full news post >>

Gold rises higher while the price of oil drops

Published: 4 April, 2014 13:38

Trade gold - price increasePeople often turn to gold as a safe haven in times of economic turmoil, and recent developments have caused a spike in the price of this perennially popular commodity.

On Friday, a low US Non-Farm Payroll number and a flat unemployment rate caused stock prices to plummet, with the S&P 500, the Dow Jones and the Nasdaq 100 all taking a hit.

It appeared that people were taking refuge in gold, which saw its price rise above the $1,300 round figure.
Read the full news post >>

Ukrainian Crisis Unsettles Commodities

Published: 21 March, 2014 15:16

Flag on barricade in UkraineCurrent unrest in the Ukrainian – or Russian? – province of Crimea continues to reverberate around the commodity markets.

The global oil benchmark, Brent crude, has seen its price tumble throughout the week after opening above $108 following the Crimean secession vote.

By Thursday it had lost nearly three dollars, although the US WTI price has risen. Such moves appear to be driven by US calls to release oil to the markets to sidestep Russian supplies.

With the UK government also urging its European neighbours to cut energy imports from the East, energy is trading more on policy moves than fundamentals, something that agile online traders may be able to turn to some advantage.
Read the full news post >>

Expensive to buy gold for Chinese investors

Published: 28 February, 2014 16:53

Chinese gold investorsA sizable portion of this week’s news in regards to commodity trading places the spotlight on the near steady trading prices of gold.

The reason that we have not witnessed much of an uptrend has much to do with the weaker yuan. In comparison to the dollar, the yuan has been seen to be trading a much lower values than in the recent past.

As this will widen the margins between the Chinese currency and the dollar, gold investments have taken a slight hit due to the higher cost for the Chinese investor.
Read the full news post >>

Oil prices plummet amid high US Supplies and easing tensions in the Middle East

Published: 6 November, 2013 15:59

Price of oil and gold forecastLast month saw the price of crude go up to a little over £70 per barrel amid concerns over the possibility of war breaking out in Syria. However, easing tensions in the region, thanks to significant diplomatic strides being made on Syria’s chemical weapons and Iran’s nuclear program, along with high US supplies have led to the price of crude plummeting to slightly over £58 per barrel.

The declining geopolitical risk in the Middle East has played a significant role in the fall of the price of crude oil. The likelihood of Iranian oil flowing back into the market has increased significantly as the country’s leaders declared they want to come to an agreement quickly with the major powers regarding their nuclear program.
Read the full news post >>

Why has oil hit a four month low?

Published: 22 October, 2013 15:25

Oil prices have dominated many of the headlines in recent commodity trading news. On October 22nd, it had been seen that recent futures have closed near four-month lows.

This has much to do with rising crude supplies within the United States. While such an event was foreseen, recent non-farm payroll data seemed to slightly hint at a brief contraction in domestic industries throughout the country.

Thus, some analysts have curtailed their predictions for oil consumption in the winter months. Although there is indeed a higher amount of oil on the open market than there is demand, some online investors may view this as a time to purchase; assuming that consumption will increase in the northern hemisphere as winter approaches.
Read the full news post >>

Good news for gold, and why oil traders should get worried

Published: 20 September, 2013 15:27

Throughout the centuries, items have been exchanged for other items or currency. Today, people can trade in either currencies or commodities. Commodities are things that are generally accepted to be of value, have consistent levels of quality, and are mass-produced across the world. These items vary from crops such as wheat to minerals such as gold.
Read the full news post >>

Gold margins getting squeezed

Published: 26 June, 2013 11:30

Gold margins decreasing June 2013
Barrick Gold Corp. announced this week that it will lay off approximately a third of its corporate staff in Toronto, which follows the news earlier in the month that Newmont Mining Corp. will divest a similar proportion of its 750-strong Colorado workforce.

Clearly, the gold miners are having their margins squeezed, and future production will likely wane if the commodity continues to fall in price.

In tandem with reduced output, gold producers are also less likely to sell forward in order to hedge exposure, thus reducing at least one source of future selling pressure.
Read the full news post >>