News Special

Raw materials, the main factors to keep an eye on

In this article, in collaboration with the experts at XTB, we discover the commodities markets to keep an eye on this week! XTB is a world class one stop shop investment broker, with a global presence in over 13 countries, licensed regulated by major financial regulatory institutions.
The XTB platform offers access to more than 6000 financial instruments – both instruments with real properties, stocks and ETFs, and CFD-type derivative instruments.
Discover XTB's offer1) Oil Chevron will continue to invest in Venezuela, but in the coming months production and exports to the USA should not exceed 200,000 additional barrels per day but the main factor keeping prices at high levels is the tense situation in the Middle East.
Concerns continue to arise about increased Iranian involvement, which could harm oil supplies from that country or the region more generally.
The head of the IEA (International Energy Agency) believes that the crisis in the Middle East represents a threat to the oil market.
At the same time, the IEA's Birol suggests that OPEC+ has sufficient reserve supply to mitigate any excessive price increases.
This could imply that the risk of significant price fluctuations in the near future is still quite high while countries that are major oil importers are encouraging OPEC, especially Saudi Arabia, to increase production to ease the oil situation.
Meanwhile, average U.S.
gasoline prices have fallen to around $3.50 a gallon, which could indicate a lack of supply tension in the U.S.
or low demand.
All products delivered to the market in the previous week showed an increase above the 5-year range, which could indicate high demand or refineries operating at maximum capacity and it is worth keeping an eye on the earnings of major US oil companies, Chevron and Exxon, which will be released this Friday.
USO, a popular oil ETF in recent years and responsible for the price drop below zero in April 2020, is once again becoming the largest oil ETF in the world.
How to invest in commodities with CFDs Investing in contracts for difference (CFDs) on commodities has become one of the most popular options for those wishing to benefit from the volatility of the commodity market.
CFDs allow investors to profit from price changes in commodities without having to actually own the underlying assets.
This type of investment offers a number of advantages, such as the ability to trade with leverage, which means investors can gain exposure to more commodities than they actually own.
With XTB you can invest in over 50 CFDs on commodities.
However, it is important to keep in mind that investing in CFDs also carries significant risks.
Commodity market volatility can lead to sudden and unpredictable price movements, which can lead to considerable losses.
It is essential to have a solid understanding of the financial and commodity markets, as well as adopt a well-defined risk management strategy before committing to this type of investment.
Furthermore, it is always advisable to refer to reliable sources and qualified financial advisors to make informed decisions before investing in CFDs on commodities.
XTB also provides a variety of tools and educational resources to help you make informed commodity investment decisions.
Whether you are an experienced investor or a beginner, XTB can meet your needs and help you achieve your financial goals.
Invest now in CFDs on commodities 2) Gold Gold continues to trade at high levels, but it seems that high metal prices are exclusively associated with the geopolitical risk premium and while the situation in the Middle East remains tense.
Israel is still planning to send troops to the Gaza Strip, although it intends to allow refugees to flee the area (according to information from Tuesday 24 October).
Furthermore, the balance sheets of the world's four largest central banks continue to have a downward trend, which has not justified a rebound in gold prices, as occurred for example in March this year.
Meanwhile, yields remain extremely high and bond futures are extremely oversold.
On the other hand, there are reports that major speculators and insiders are abandoning short positions in bonds, theoretically providing room for a rebound in bond prices and a decline in yields, potentially leading to a continuation of price increases.
A correction in the gold market is possible in the short term.
In recent months, the price has not closed above $2,000 even once (monthly candle).
The range between $2,000 and $2,100 likely remains very strong resistance, and without a change in financial situation, there likely will not be a significant and sustained price increase in the gold market.
How to stay updated on market news and analysis? If you want to stay updated on the latest market news and access economic-financial analyzes and forecasts, we suggest you visit the XTB news section.
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