Oil and Gold this week: Gloom or Gains?

Published: 1 June, 2015 13:08

A Balancing Act?

The online commodity trading community has been carefully following the prices of oil during the past few months and some analysts believe that a slight price rise may be set for the near future.

Recently, it has been shown that stocks of crude in the United States fell for a fourth week in a row.

This was the primary cause of the rise of front-month Brent to $62.50 dollars a barrel (a gain of 40 cents).

Information released by the Energy Information Administration highlighted the fact that reserves within the United States fell by nearly 2.8 million barrels.

This was much higher than the initial drop of only 857,000 barrels. This has aided in the support of a market that has seen the dollar rally over the past week. In turn, oil could become a slightly more expensive commodity for those who are employing other currencies than the dollar.

Experts Predict Gold to Fall Again

Although many online commodity trading brokers have rightfully observed that gold lacks any significant direction at the present, there are some analysts who believe that this precious metal could be set to test $1,100 dollars in the near future. Although gold has been trading in the range of $1,175 to $1,225 dollars in 2015, this may all soon change. Recent figures may be offset by the imminent interest rate rise that is predicted to occur in the early part of 2016.

This will make gold more expensive to hold and thus result in a sell-off. Investors may begin placing their funds into assets that earn higher yields. It is important to note that gold has not traded at $1,100 dollars since March of 2010. The online commodity trading community will therefore be watching the price of gold very carefully in the weeks and months ahead.

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