Heating oil is a distillate fuel used for domestic heating, and, to a moderate extent, in industrial burner units.
Natural gas prices rebounded on Wednesday after forecasts turned colder. Below-normal temperatures in some parts of the eastern US were expected.
When the dollar index is compared to gold prices for the last five years, you can see that gold and the dollar move in opposite directions.
Gold underperforms when real rates rise. This decreases the attractiveness of gold since investors would rather invest in more attractive bank deposits.
Gold outperformed most global equities as fears of a global slowdown spooked investors.
GDX consists of publicly-traded global companies. The companies are primarily involved in gold mining. It has assets worth $7.2 billion.
Gold and its ETFs—like the SPDR Gold Trust (GLD)—had already climbed. However, gold rallied due to the ECB’s massive stimulus program.
The SPDR S&P 500 ETF (SPY) was trading higher during the morning trades on January 22, 2015. It traded higher because the ECB announced the massive stimulus package.
The EIA reported that weekly crude oil inventory increased by 10.1 million barrels from the previous week. This sent crude oil prices down 1.48%.
China has a pretty big hand in the commodities markets. It’s the world’s largest consumer of steel, iron ore, and coal.
The rally had pushed silver ETFs such as the iShares Silver Trust ETF (SLV), the ProShares Ultra Silver (AGQ), and the Silver Trust ETF (SIVR) higher.
The recent rally of gold and silver has reflected in ETFs like the SPDR Gold Shares ETF (GLD) and the iShares Silver Trust ETF (SLV).
In the medium to long term, there are many catalysts for precious metals’ prices. There are certain catalysts that precious metal investors should watch.
Strong physical bullion buying helps support precious metals’ prices. Gold prices were supported by physical gold buying in China and India after its prices increased in 2013.
Outflows from ETFs led to an ~28% fall in gold prices in 2013. As a result, it’s important for investors to monitor changes in ETF holdings.
As a result of abandoning the Swiss franc-euro ceiling, the US dollar, or USD, fell ~30% against the Swiss franc, or CHF, in a single session on Thursday.
The ECB has a target inflation rate of 2%. Inflation rates are now close to 0.3%. The ECB is worried that it’s dangerously close to sliding into deflation.
A cap was put in place to stop the currency’s appreciation. An appreciating local currency is detrimental to exporters.
Precious metals are on a high after the Swiss National Bank’s move. Metals—including gold, silver, and platinum—increased on January 15.
The latest STEO forecasts that US heating oil prices should average $2.90 per gallon, 25% lower than last year.