Commodities form a solid foundation for many investors, giving them an asset that holds value despite economic hardships. Of course, certain assets perform better than others and nothing tops gold when it comes to historical value.
Demand for commodities continues to ramp up as the world’s financial systems deal with the aftermath of the Russo-Ukrainian War alongside rising inflation rates. Even as the first few months of 2023 have passed, there’s a certain hesitancy in the air as markets continue to probe the strength of demand worldwide. The global metals market has also seen movement as pressure continues to mount this early into 2023.
However, we’re seeing signs of a future upheaval of said pressure as the US Federal Reserve eyes a less aggressive monetary policy. This might be the exact sign that many are looking for as gold has had a historically inverse relationship with the US Dollar. In this article, we’ll dive into some outlooks for the future of commodities this year and how you can make use of the trends with APM International!
Trading Commodities: A Sea Of Opportunity
In the precious metal trade, we’ve been eyeing several factors in determining the price trend we’re currently experiencing. China has been a major player when it comes to the commodities market. According to sources, the country makes use of around 945 tons of gold and has a share of 30% of the world’s gold market.
This scenario is similar for many other commodities such as iron, copper, and silver due to their uses in the manufacturing industry. Although the country’s “Zero-tolerance” policy towards COVID stunted growth at first, the reopening of markets has provided some fresh air for investors. Expect a rise in performance as demand ramps up.
The US Dollar, especially this month, has been undergoing a rapid change in price trajectory. Just this month, we’ve seen a dollar that rose then steadied and dropped as the weeks came and went. This meant that gold saw the inverse of that trend, ending with a positive growth that balanced out any losses from this month.
From the last analysis of Gold Prices, we’ve seen an uptick of 0.2% when it came to spot prices – equaling around $1,967.39/oz. Buyers on the worldwide market have been keen to take up this opportunity with suggestions to stay tuned to US Economic Data for further signs of what trades to input next.
Other Precious Metals
Typically, those focusing on precious metals tend to diversify into other markets whenever possible. Those working with Platinum stocks should stay tuned for an uptick as many experts, such as those at Citi, have been forecasting a price rise within the next half of the year. Already, we’ve seen Platinum rise to around 0.9% this year so it makes sense to keep watch.
Silver has also seen some movement but more toward the side of volatility and risk. Some have noticed resistance in the price point of $23 with a breakthrough being unlikely. We could be seeing an adverse effect as industrial demand could taper off. Even general investor sentiment can play a huge role in price trends as the market closes in on a very sensitive point.
As always, keep track of trends and do your research when it comes to erratic markets such as Silver. Make sure to keep composed and limit your position as things might turn turbulent from here on out.
See Positive Growth In Your Investments With APM Intl DMCC
Navigating such a hectic market means devoting time and energy to marking trends and spotting the signs of reversal. An expert view on things is now more important than ever before, especially in the face of such conditions. If you’re looking for the right partner to help you work out your bullion transactions, then APM International is the perfect choice for you.
As a team of market experts, we’ve helped countless investors in Dubai with managing the procurement and security of their bullion. APM Dubai has always been focused on providing accurate information alongside quality gold and silver investments for all clients. See for yourself the team trained under Rakesh Rajdev and how we tackle your investment needs!