All that glitters may not be gold

Published: 10 November, 2015 12:36

Following what can only be called a massive downturn during the past year, futures in oil have failed to emerge from their continual slide. This is the fourth straight session of losses and many online commodity trading experts point to the questionable data out of China as the primary cause.

Should the second-largest economy in the world prove to be waning in terms of energy demands, oil may very well be in for a rough ride in the weeks and months ahead.

WTI and Brent crude have recently posted dismal figures and global weakness during 2016 will continue to present challenges for black gold. It is also important to note that a stronger United States dollar could cause online commodity investors to take a bearish stance well into the new year.

As OPEC does not appear to be contemplating any type of cut in their production, future oil trading figures may continue to suffer.

Big weekly loss – Up for a rally?

Following the trend with oil, gold has fallen for its seventh straight session. This should come as no surprise due to the perceived strength of the dollar as well as the possibility of a potential interest rate hike by the Federal Reserve in December. Positive non-farm payroll data caused this yellow metal to take a further hit and this has resulted in a combined weekly loss of almost 5%.

While many online commodity trading experts have seen gold as a bullish prospect from a long-term perspective, some are now wondering what support level needs to be reached until a rebound occurs. Gold is nonetheless a save haven for many investors and should the Federal Reserve decide not to raise interest rates, we may very well witness a short-term rally in December.

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