Forex Strategy Video: What Will It Take to Revive the Long-Term Oil, Gold Bulls?
• Gold's strongest backdrop was founded on the need for an alternative to the the most liquid 'fiat' assets
• Oil is a strong reflection of global demand, but supply is the most capable catalyst for a decisive rally
Whether or not you trade commodities directly, it is important to keep track of the asset class' key players. In particular oil and gold present remarkable trade opportunities in their own right; but they are also unique measures of global economic and financial health. In the past few weeks, both metal and petroleum product have garnered attention for tentative, provacative moves. Oil has seen an incredible level of volatility with threats to reverse a bear trend that is only second to the 2008 plunge. As a 'fuel' for global growth, its economic value may be considered distinctly demand-centric. However, supply factors are most volatile and thereby the critical aspect for price. For gold, we have a unique measure of financial health. The boom years for the precious metal were defined by first a need for safety and then an appeal to avoid universal devaluation of traditional currencies and fiat assets. How will these commmodities trade going forward and what can they tell us about the broader market? That is the focus of this weekend Strategy Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.