Ebola outbreak hits currency exchange rates?
In the recent commodity trading news, is seems as if those allured by the profit of gold may be in for a disappointing return; at least for the short term.
As this benchmark indicator hints at other financial trends, recent developments in regards to housing sector data in the United States alongside a bullish dollar have caused the yellow metal to take a slightly bearish outlook.
Figures have shown that investor appetite is on the upswing; thus fueling their ability to enter into open trading positions.
As always, the inverse relationship to the dollar is another reason for slight concern. However, the potential damage in international trade due to increasing concerns over the Ebola outbreak may serve to mute the overall negative outlook for gold in the coming weeks.
Should situations deteriorate further in West Africa and if data suggests that the regional economy has suffered, we may see a resurgence into the gold market.
On the other side of the coin, we have seen an increase in crude oil prices during the past few days. This has been primarily caused by API data which stated that crude stocks within the United States dropped by approximately 1.4 billion barrels. This is combined with an estimated drop in gasoline supplies by 2.1 million barrels.
Thus, it is only logical that prices have risen. However, eyes are particularly turned to both the Middle East and the ongoing conflict in Ukraine. Such regional instability may indeed cause speculation that there could be diminished production in these two key areas.
Still, there are hopes that these conflicts will have little impact on overall production and thus, many analysts feel that any rise in crude prices may represent a rather short-lived increase. For these reasons, online trading professionals who wish to make a profit in this commodity may choose a short-term position.
