A Rough Road Ahead for Oil and Gold

Published: 12 May, 2015 13:31

A Waiting Game for Gold?

In recent online commodity trading news, caution still seems to be the name of the game in terms of gold.

Indeed, its prices have still remained sluggish during the past week; holding firm between $1,800 dollars and $2,000 dollars per ounce.

Despite disappointing data emerging from the United States, gold has not yet experienced a significant rally. Some have cited this rather dull performance as being a result of rising bond yields.

As higher bond prices are associated with raised holding costs, certain investors may be wary about further diversifying into this yellow metal.

However, other extenuating factors such as the impending financial deadline for Greek debts may cause some to seek a safe haven in gold. This is particularly the case should the Syriza party be forced to hold a referendum in the near future (as has been suggested by certain analysts). Should further instability within the European Union emerge, we may very well see a short-term rally although a rise past $2,000 may still be some time off.

More Gloom for Oil

According to a recent report published by Goldman Sachs, the price of oil is set for another dip. This is is certain to spread more doom and gloom within the online trading community. Countries such as Russia which have experienced economic hardship due to the plummet of oil will certainly be watching the charts over the next couple of days.

One fundamental factor behind this dip is said to be that the rally over the last two months was actually premature. In turn, this has realistically derailed any return to stability. A drop in oil prices may very well reflect this sentiment. Other factors including rising stockpiles likewise have online commodity traders embracing a bearish stance into the near future.

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