Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX

FCA License No: 760555

ATFX-search-icon
Client Portal
Start trading
rch

Russia-Ukraine crisis opens safe-haven in Crude oil, Gold and Silver

From time immemorial, commodities such as crude oil, gold and silver seem to be the safe haven for investors during times of wars, uncertainty, and instability. Investors tend to grab these products as a safe haven for currency fluctuations and hedging.

 

The lingering Russian-Ukraine crisis has once more given these three commodities an opportunity to sower higher and visit new ATHs as they become the only viable investment alternatives for investors.

 

Crude oil, for instance, has maintained steady upward movements for a consecutive three months now and attaining a new ATH at $107.60 per barrel.

 

One important reason why the crude oil prices have further skyrocketed is the sanctions placed on Russia today - who had become the major supplier of crude oil in the East and the blockages in delivery due to the crisis. WTI crude oil prices could likely extend further this week based on the proposed move to cut off Russian energy exports, which is already giving refiners and shippers a pause on actions.

 

The price of crude oil is fast approaching the 110 psychological level. The bulls have remained totally in control. Well, we might expect the bear to act from this region; otherwise, the next target for crude oil could be $120 if the crisis persists. Of course, the recent ban by US President Joe Biden on Russian flights from using the American airspace is another good reason for the prices of crude oil to hit $120 per barrel sooner than expected, especially if the proposed peace talks prove abortive.

 

Similarly, Gold has been exerting its own influence alongside crude oil. Gold engineered by the crisis has started the new week with a strong uptrend hitting a new ATH at $1973. Massive profit-taking has been going on on gold since yesterday, bringing the price down to the 1938 region once again. Many fear that gold might retest $2000 again this year which was first witnessed during the initial outbreak of the covid-19 pandemic.

 

Nevertheless, Silver seems to have a corresponding movement with gold. Both seem to have the same trend virtually all the time with volume variations. The precious metal silver had similarly created its own ATH this week, $25.600. The silver price is currently sitting around the $25.000 region. Silver might hit $30.000 this year if the current situation persists.

 

Finally, one may be tempted to ask: are these commodities currently oversold, having attained new ATH this week? Well, the best answer to this question is yes and no. Yes, if the peace talks succeed this week and the Russian-Ukraine crisis is brought to an abrupt end with all sanctions immediately removed on Russia. On the other hand, the response could be no if the situation escalates in the coming weeks. The market is indeed very volatile at this point, offering investors an excellent opportunity for quick profits making. Commodities seem to be the favorite of fast profits-based traders.

Last Updated: 03/03/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

Recent news

Litecoin Reversed from Support Zone

Litecoin cryptocurrency recently reversed up strongly from the support zone lying between ...

Recent news
Crude oil prices break resistance & aims $116 in the oil market

Bullish momentum in the oil market has enabled WTI crude oil prices to break resistance at...

Recent news
Elon Musk advocates Dogecoin as potential currency

There has been an increase in the daily trading volume for the meme coin - Dogecoin, which...

Recent news
Gold rebounds above $1800 from a softer USD: Eyes on retail sales data

The precious metal gold reclaimed its bullish momentum after testing three months low at $...

Recent news
Investors Anticipate Aggressive Interest Rate Hikes Amidst High US Inflation

Last week, the US April CPI was reported at an annual rate of 8.3%, a slight slowdown from...