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© Reuters.
Investing.com – This year has seen historic movements for a number of commodities such as oil.
He has recovered from the severe declines suffered by the pandemic.
It has seen record levels since last March after fiscal stimulus plans and hopes of achieving a solid performance by the end of 2020.
The question that arises here is whether or not this strong uptrend can continue until 2021.
As for gold, prices initially increased in mid-2019.
Specifically, when trade disputes between the United States and China began to hurt the prospects for economic growth and global confidence.
Let’s move on to 2020, when the tensions start to ease.
Gold has received new support after the world adopted a new round of monetary easing to respond to the consequences of the pandemic.
The importance of these factors that contributed to the rise in safe-haven prices for minerals continued to grow in importance.
This was followed by reaching its highest level on record at $ 2,072 in August 2020.
Of course, the continued decline in the value of the US dollar naturally increases the demand for gold which is priced in US dollars.
During the current year, interest rates have been reduced all over the world to almost zero.
Huge bond-buying programs have also reduced returns – factors that have kept gold’s appeal even as panic levels subside and risk appetite increases.
Along with the Fed’s commitment to the previously announced interest-fixing policy, along with the reluctance of officials to launch a completed implementation package, all of this points to the continuing green currency recession.
During the month of April, the price of Brent crude oil fell to $ 15.98.
WTI futures prices have fallen to negative levels.
This is the first time in its history with the emergence of the first wave of cases of the Covid-19 virus and the escalation of tensions between Saudi Arabia and Russia.
The two countries entered a price war when the pandemic forced them to reassess the situation and act quickly to ensure a recovery.
Successive reductions in production quotas have so far been successful.
As the price of Brent crude oil has now broken through the $ 50 barrier.
Although still far from the 60+ levels we saw before the pandemic.
However, expectations indicate that more gains will be made in the year 2021 if the global economy recovers as expected.
Risks
Nevertheless, risks remain as Europe enters a second lockdown in November.
And the tightening of precautionary restrictions in other parts of the world, such as Australia and the United States.
These factors can delay the increase in demand.
As for OPEC, its plan for December so far has been to hold monthly meetings to adjust new production levels.
Members are increasingly reluctant to adhere to strict quotas, creating fears of overproduction.
Which can push oil down.
However, looking at the big picture, the resumption of fiscal stimulus packages and the introduction of vaccines should contribute to oil conditions.
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