Commodities Trading: Gold and Crude Oil Start to Look More Robust
Gold fell 2.5 percent, its biggest decline in four weeks, falling in tandem with riskier assets such as equities and industrial metals.
It did, however, start to move in sync once again with riskier assets on optimism European leaders will be able to contain the region’s debt crisis. This followed the rallies on Wall Street and in commodities after the eurozone’s two biggest powers France and Germany said they would meet twice to prevent the crisis from engulfing the entire 17-nation currency area.
Although the stock markets are looking slightly bullish there is a fear that a number technical trading indicators haven’t supported the latest price moves. Should this continue then a bearish divergence might develop which would then be followed by a sharp sudden pull back taking investors by surprise. And the crude oil market is in the same boat. Oil has managed to hold the $87 mark nevertheless it has not yet been able to make headway for $91.
A recent City Index CFD trading report suggested that “[We have] seen oil head higher but, ideally, a much sharper push higher would be beneficial for this energy commodity backed by robust momentum. As long as crude oil remains over $87 then $91 is the next target followed by the all-important $100 per barrel marker.
“In the short term we need crude oil to stay above $83.50/$84.00 to make sure we stay on track for the recent near term optimistic move. The intermediate term direction of the market is turning from negative to neutral but this is dependent on how crude oil fares in getting closer to the up side target level this week”.
Note that you can speculate on crude oil, stock markets and gold with CMC Markets and other CFDs brokers.
CFDs are a leveraged form of investment, they carry a high degree of risk to your funds and you can incur losses that exceed your investment. Ensure that CFD trading matches your investment needs as it might not be suitable for all types of investor. You should only speculate with capital that you can afford to lose. Make sure that you fully appreciate all the risks involved and seek independent advice where required.