There were several vital commodities in the news in September. Some markets experienced huge volatility, while others are tightly related to the upcoming U.S. elections.
Gold and silver on the rise
It is said that the metals market can correlate with the current economic situation worldwide. Copper is no exaggeration when it is treated as the barometer of the worldwide economy. Traders look at precious and base metals not only as investment options but also because of their relation to other markets.
Those who prefer investing in gold look for stability and long-term benefits. This choice means that the situation in the trading landscape may not be ideal to identify potential trends. And now, during two major conflicts in Europe and the Middle East and a few weeks before U.S. elections, the XAUUSD price has reached its ATH. Together with FED’s decisions during the FOMC decision to cut interest rates, traders opt for safe-haven assets like gold.
Despite the slow start of September, silver investing brought many admirers in the last month. In the middle of the month, the XAGUSD price broke the 30-dollar barrier and entered October at the approximate 31.5 level, the highest since May. Even though there are some similarities between gold and silver investing, traders should look at the potential demand for silver. Due to the rapid growth of advanced technologies, it can be treated as precious and industrial metal.
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Agricultural commodities news: Unpredictable weather conditions
When it comes to agricultural commodities news, traders can’t imitate the patterns known from the precious metals market. Several other factors heavily involve price changes, making agricultural commodities very volatile and unpredictable.
Cotton investing may be one of the major examples of the market’s volatility. According to research published by the National Cotton Council at the beginning of the year, the U.S. will face massive export competition from Brazil. Nevertheless, droughts in the United States and China caused massive breakdowns in the supply chains, heavily impacting the cotton market.
Cocoa and coffee fluctuations are also tied to weather conditions. For example, unprecedented weather in Western Africa in January and February resulted in terrible yields and tons of rotten seeds, leading to an extreme rise in prices in the first quarter of the year. In September, due to droughts in Brazil, cocoa prices also increased after the rapid fall at the end of August.
Chaos in energy market
Tensions in the Middle East caused absolute madness when it comes to the oil prices. Even though there hasn’t been any major “green” movement, after massive artillery fires into Israeli territory in October, prices of oil began to rise. The rapid development of this situation is the perfect example of why traders should always follow commodities news.
Traders who want to find out what is NATGAS and how important it may be in the upcoming U.S. elections should recap the current situation in Pennsylvania. Its exploitation is frozen due to Joe Biden’s decision in January. However, as PA is a swing state in the upcoming elections, Donald Trump heavily highlights the importance of natural gas for security and will let miners exploit it immediately. Kamala Harris’s opinion is yet to be known, and it may be especially vital on November 5th.
Explore the tense situation of natural gas in Pennsylvania
The SimpleFX platform gives access to multiple trading assets, including metals and commodities. Traders should keep tabs on the upcoming U.S. elections, international affairs, and weather conditions, especially while engaging in the agricultural commodities market.
