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.