Commodities Market Review: Crude Oil Drops 19.16% Precious Metals Outlook Is Positive
Summary:
- Over the past three months The Philadelphia Gold and Silver Index (Ticker:XAU) have seen a positive increase of 7.13%.
- Coffee Futures (Ticker: ICE_KC1) saw a positive increase of 2.51% over the three-day period last week.
- Crude Oil (Ticker: CME_CL1) hit its lowest price for 2018 on Christmas day at $42.53 this is in line with the overall global stock market decline over concerns of the US government shutdown.
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The Philadelphia Gold and Silver Index (Ticker: XAU) is an index of thirty precious metal mining companies that is traded on the Philadelphia Stock Exchange. Over the past three months XAU have seen a positive increase of 7.13%. One of the biggest transformations that occurred in the precious metals industry was when Barrick agreed to buy smaller rival Randgold Resources in a $5.4-billion deal. In a report this week from Bloomerg Mark Bisrow Barrick Gold Corp.’s new chief executive officer stated that: “this is the start of a big shake-up” he went on to explain that “This industry, if it had carried on the way it was, was going to become irrelevant.” With firms like Barrick placing sustainability and longevity of the industry ahead of profitability and cash flow the positive precious metal trends outlook remains bullish. This was in agreement with the bullish forecast issued by I Know First.
Increased Traceability and Transparency Stabilise Coffee Futures
Coffee Futures (Ticker: ICE_KC1) saw a positive increase of 2.51% over the three-day period last week. While this is a relatively small increase after coffee futures hit a thirteen year low in September 2018 with the new Transparent Trade Coffee it has allowed the industry to be revitalised and achieve greater stability and positive growth. Current pricing practices are “limiting the specialty sector by choking off supplies of better and more interesting coffees,” said Peter Roberts, the Atlanta-based Emory University professor behind the TTC. As the demand for traceability increased and the establishment of greater transparency and traceability within the coffee industry investors can expect a stable and positive trend to coffee futures in 2019. This was in agreement to the bullish outlook that I Know First released.
Crude Oil Suffers Drops to its Lowest Price Since June 2017
Crude Oil (CME_CL1) hit its lowest price for 2018 on Christmas day at $42.53 this is in line with the overall global stock market decline over concerns of the US government shutdown. The graph below shows how over the past 3 months crude oil futures have fallen by 19.16%. In good agreement with the bearish forecast sent to I Know First subscribers.
I Know First Successful Forecast
On October 5th I Know First algorithm issued bullish predictions for commodities for a 3-Month time horizon. The predictions include Precious Metals (XAU) and Gold (GLD). Over the 3-Month trading period from October 5 to Janurary 5, Precious Metals and Gold rose by 7.13% and 7.01% respectively.
This bullish Platinum and Natural Gas forecasts were sent to the current I Know First subscribers on October 5th
To learn how you can become a subscriber today, click here.
Please note-for trading decisions use the most recent forecast.
