High demand for precious metals and commodities

High demand for precious metals and commodities



The recent FOMC decisions and the rising tension in Iraq have boosted the demand for the precious metals (Gold and Silver) and also pushed the crude oil high.

  • Gold and Silver prices remain trading higher :

Despite the increase of the US inflation rate above than 2 % and the unemployment rate down, the Federal Reserve Bank decided to leave the key interest rates at its lower level for a longer period of time. Accordingly, the Fed decision has affected the US Dollar while increased the demand for Gold and Silver. And the second factor that pushed the Gold high is the rising tensions and violence in Iraq, which boosted the demand for the precious metals as safe haven assets. In fact, the Gold rebounded to its highest level in 3 weeks, above $1300 per ounce, while the silver rose significantly on Thursday hitting $ 20.91 per ounce.

  • Crude oil rebounded and hit $115 per barrel:

The oil prices surged amid the escalating tensions in Iraq, which provoked the lack of oil supply, since the country produces a significant amount of oil and Iraq is considered as the second producer of oil in OPEC. In fact, Brent crude hit $115 a barrel, its highest price of the year, in addition the WTI crude oil rose more than $106 a barrel.

As a result, the investors in this period have turned to invest in precious metals and taking profits from the higher prices of the Gold and Silver, while the oil supplies will decrease more a long as the tensions will not subside in Iraq.

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