In the ever-evolving world of commodities, the first half of 2024 has seen dramatic shifts across various sectors, leaving investors and analysts questioning the market’s direction. As Saxo Bank’s commodity chief, Ole Hansen, recently discussed in an interview, the commodity market has returned to square one, with the Bloomberg Commodity Index, which tracks 24 major commodity futures, showing little change from the beginning of the year. This return to equilibrium follows a strong rally in the first quarter, which has since deflated, raising concerns about the market’s future trajectory.
Precious Metals: Gold Shines While Silver Struggles
Among the various sectors, precious metals have garnered significant attention, particularly gold. Gold has continued to make new record highs, positioning itself as a safe haven amidst global economic uncertainty. The rally in gold has been driven by several factors, including central bank demand, de-dollarization efforts, and concerns over the upcoming U.S. presidential election. As Hansen noted, gold’s appeal has broadened, attracting high-net-worth individuals and family offices, particularly in the over-the-counter (OTC) market. These investors are less sensitive to interest rate fluctuations, instead focusing on gold’s potential as a hedge against geopolitical and economic risks.
Silver, on the other hand, has faced challenges. Despite
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3 Responses
Wow! The detail! Awesome blog Jarrid. Thank you
Nice one Jarrid! Very clear and detailed like Janet said. Really learn a lot from your input in TTC, thank you so much
Thanks, Jarrid, for writing the post,