As gold pauses for breath below the key $1300 handle and WTI crude oil trades around $52, we are wondering what 2019 will bring for these commodities. On the one hand, the outlook for gold and other metals look bullish in 2019. The fact that the Fed has stopped hiking interest rates should be good news for noninterest-bearing and low-yielding assets, such as gold, silver and copper. What’s more, the Fed’s likely inaction this year should help to devalue the dollar against her major rivals. This should also help to boost these buck-denominated commodities. Furthermore, the prospects of a stock market correction should help to keep haven assets such as gold underpinned. But on the other hand, the fact that all the other major central banks are meanwhile in no rush to raise interest rates means there is no real alternative currency that yield-seeking investors will be piling into yet. So, the dollar could remain supported for a while yet, even if it has weakened a little over the past couple of months or so. That could change, however, once – sorry, IF – there is real progress made on Brexit to allow the Bank of England and, to a lesser degree, the European Central Bank to tighten their policies. Only then could the Dollar Index start to break down more aggressively, boosting the metals’ prices as a result. Meanwhile it could be a different story for crude oil, for the black stuff faces uncertain times ahead due to expectations for lower demand and stronger non-OPEC supply growth. While there’s the potential for a bit of recovery in the very short-term outlook, as the OPEC tries to tighten the market, crude prices are likely to come under pressure again later in the year as the potential for higher prices encourage more (shale oil) production.
Trading leveraged products such as FX, CFDs and Spread Bets carry a high level of risk which means you could lose your capital and is therefore not suitable for all investors. All of this website’s contents and information provided by Fawad Razaqzada elsewhere, such as on telegram and other social channels, including news, opinions, market analyses, trade ideas, trade signals or other information are solely provided as general market commentary and do not constitute a recommendation or investment advice. Please ensure you fully understand the risks involved by reading our disclaimer, terms and policies.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.