Analytics of commodity markets
Oil and gold are the main indicators of the global commodity market. Their quotes working more on the fundamental principle can bring in strong bursts 7-12% in a few trades. Analysts of investment exchange portal prepare for you detailed reviews of the markets of oil, metals, grain, meat, so you can make money from it.Commodity markets
Four news on the oil market
Why the Rockefeller Foundation believes the oil is futile or how the oil giants survive
Four factors of uncertainty that affect oil prices
How the oil will be extracted in 10 years
The oil shortage might occur in 2020 – forecast of prices for the next 5 years
The reaction of precious metals markets to the ECB decision
Does it make sense to buy gold in 2017
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Is it possible to make money on commodity markets?
The difference of commodity market from financial or stock ones lies in the fact that its assets are the instruments with a limited resource.
If a driver of currencies and stocks could become a strong economic growth (GDP growth), oil prices and gold rising in price, also when market supply (production) is reduced. So commodity market is less volatile and more suitable for medium-term strategies.
What affects commodity markets:
- economic and political situation and the speculative mood of investors. Unlike the stock market which reacts strongly to the financial statements and future orders of the industry, the commodity market acts out the investor sentiment. If the dollar is rising, demand for precious metals is declining;
- news, statements. A vivid example is the reaction of oil prices to the statements of OPEC, Russia, to the reporting from the United States;
- the status of the largest economies in the world. The crisis in the US, EU and China reduced the demand for food, due to the quotations on grain meat went down;
- the volume of resource extraction and industrial world demand.
Emphasize that by analyzing the commodity market there is a possibility to draw conclusions about the power of quotes to the opposite assets (US treasuries, US dollar, Euro). Conversely, a weakening dollar, stock market indices is a signal to buy futures and CFDs on precious metals.
How to make money on commodity markets:
- to trade the relevant asset with any Forex broker or to bet on the price change with binary options brokers. The advantage of this method: minimal investment, minimal risk (trend analysis, monitoring of news and analytics through a broker). You can also use free signals for options at Grosl Trader.
- to trade futures on CME directly through US broker;
- to invest money in trust funds (mutual Funds, ETFs, etc.). You can do this by becoming a member of the mutual Fund or buying shares of ETF-Fund through a broker;
- buy gold bullion or investment coins of gold.
We recommend you to pay attention to the first option, because it is the least expensive, in terms of fees and more suited to speculative and short-term strategies.
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