Copper, Gold and Crude oil investments on the rise
Crude oil futures have prolonged their upward trend to a second consecutive session and have posted a staggering gain of almost 4% to close the day at $82.59 per barrel.
The past two trading session have seen the oil commodity rally strongly against months of volatility and decline. Crude oil investments gained more than 9% this week, managing to recoup almost all of their losses sustained over the year.
The upward momentum has been attributed to a strong showing in equity markets and the high unemployment rates in the U.S. seemingly on a slow mend.
Metal commodities mirrored crude oil investments, and rounded off a week of turbulence on a positive note. Copper, gold and silver all rose considerably, with gold possibly regaining its safe haven status, if the gains persist into next week. Copper futures managed to pare most of their considerable losses and climb from the disturbingly drowning levels it reached last week, which saw the high-profile commodity futures sink to their lowest mark since 2008, when the recession was in full force.
The commodity markets now seem wholly dependent on the resolution measures being developed in Europe in order to curb the region’s spiralling debt crisis. Several meetings have been held across the continent by the finance ministries in the U.N., and the European Central Bank has launched its bond-purchasing stimulus plan, yet investors remained sceptical over the actual effectiveness of the gestures.
It is clear that in order to do full repair for the ailing commodity futures and crude oil investments in particular, much more is needed than a mere short stretch of economic windfall. With the debt situation in Europe still escalating, the possibility of a Greek default imminent, and the unemployment issue in the U.S. far from reaching long-term resolution, a more focused plan of attack is needed in order to keep crude oil future on the upswing they now seem to occupy.
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