Commodities Outlook 2008
In recent years the commodity market has become a hot topic for futures and options traders.
Boom or Bust?
Recent years have seen an increased demand for energy and base metals such as copper and aluminium. However, a decline in the price of these commodities recently has led analysts to predict a fall in value for this area of the commodity market.
“The recent decline in copper and aluminium prices tells us that the economic slowdown is anticipated,” says Dennis Gartman” - CNBC
Analysts feel the boom is over for many commodities which may have seen their peak. They advise investors to be selective going forward.
At Finance Exchange we keep a particularly keen eye on oil and gold prices, due to the impact on the currency market.
Outlook for Oil
2007 has seen oil making the headlines across the globe, with fears of spiralling costs reaching in-excess of $100/bbl.
What will happen to Oil in 2008? Experts PDC Energy are predicting lower oil prices for 2008, with the possibility of trading as low as $60/bbl.
Looking further into late 2008/09 PDF Energy sees potential for further reductions in oil price with the increased capacity in Nigeria giving OPEC higher capacity, as well as a continued slow down in energy demands for the US.
Outlook for Gold
Although Gold has seen a temporary dip inversely to the
The advantage of gold being its hedging capabilities against volatility in the currency markets, the credit crunch crisis, as well as the poor performance of the Dollar in 2007 and high energy prices.
What will 2008 hold for Gold? “2008 will be a pivotal point where things come together to see if we are near the peak or if the move will continue,” says Carlos Sanchez, associate director of research at CPM.
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Hi rob, thanks for the comment & dropping at my site. Hehe, I did involved in Forex trading since year 2005 but just dropped off, after the forex crisis in this mid August… Love your site. will visit your blog more often. Cheer…