Seychelles, Europe, 30 August 2024- For those in the know, metals have always been a staple of stability and growth. As economic tides shift, more investors are turning their gaze from traditional assets to the tangible allure of precious and industrial metals. PXBT’s latest research delves into the metals market, spotlighting the important metals to keep an eye on. Let’s explore what are the key metals to watch right now and how to trade them with PXBT.
What drives Metal markets?
Metals are a category within the Commodities market where prices are primarily driven by supply versus demand. Metals can be Precious like Gold and Silver or Industrial like steel, aluminium, copper, but both share similar traits such as relative scarcity.
To explain the difference, Industrial metals are common metals used in industry or manufacturing and tend to tarnish, oxidise, and corrode over time or when exposed to the elements. On the contrary, Precious metals are rare and expensive and you’re more likely to find these metals in a jewellery store, but also in catalytic converters, space vehicles, computers, and medical and hi-tech equipment.
Because each different type of Metal has different attributes and therefore usages, demand can fluctuate dramatically. In addition, raw Metal ore is extracted from the Earth depending on availability and mining capacity, ensuring that the supply of each Metal is unique.
Gold
Gold is the most important Precious Metal globally. Why? Gold’s allure extends far beyond its lustrous appearance and age-old association with affluence. This precious metal occupies a unique position in the global economy, serving as both a reliable store of value and a universally recognised medium of exchange.
Unlike perishable commodities or depreciating assets, gold’s inherent durability and resistance to corrosion ensure its perpetual existence, fostering a perception of enduring worth. This distinctive characteristic, coupled with its scarcity and widespread desirability, has cemented gold’s status as a timeless hedge against economic uncertainty and a cornerstone of financial systems worldwide, transcending cultural and geographical boundaries.
Even central banks are buying Gold in large quantities, hedging for possible problems with fiat currencies. Gold is currently priced at around $2,500 per troy ounce, and recently set a new all-time high. Gold has broken out from resistance and is in the midst of an uptrend, making it a trending asset in the trading world.
Silver
Silver, often overshadowed by its more illustrious counterpart gold, plays a crucial role in the global commodities market. This precious metal is not only valued for its industrial applications, such as in electronics and solar panels, but also for its investment potential. For traders, silver’s inherent volatility and sensitivity to macroeconomic factors present unique opportunities.
Unlike gold, which is primarily a hedge against economic uncertainty, silver’s price movements are more closely tied to industrial demand and technological advancements. This dual nature makes silver a versatile asset for traders looking to diversify their portfolios and capitalise on both market upswings and downturns.
From a trading perspective, silver offers ample liquidity and accessibility, making it suitable for both novice and experienced traders. The metal’s price is influenced by a myriad of factors, including geopolitical events, currency fluctuations, and changes in industrial demand.
Additionally, strategies like trend trading, range-bound trading, and gold-silver ratio trading can help traders navigate the complexities of silver trading. For instance, trend trading involves capitalising on the prevailing price direction, while gold-silver ratio trading leverages the historical relationship between the two metals to make informed decisions
Currently trading at around $30 per ounce, Silver’s long-term cup and handle targets reach as high as $200, representing an over 600% increase.
Copper
Copper is an Industrial Metal, and perhaps the most important one. It is known as Dr. Copper because of its supposed ability to predict the overall health of the global economy. When Copper is strong, typically so is the economy. Copper is heavily used in construction – pipes for plumbing, wire for electrical, power transmission and generation, and telecommunication.
Similar to Gold, Copper set a new all-time high in 2024, possibly pointing to a new uptrend. The global economy and within the United States, the economy is showing resilience and Copper showing strength helps to confirm this. Copper is currently trading at just over $4 a pound.
Lead
Lead is yet another Industrial Metal, albeit with a lot less economic importance than Copper. Lead is used in batteries, radiation shielding, cable sheathing, and in ammunition.
Lead hasn’t made a new all-time high in 2024 like other Metals on the list, however, it is currently trading at $2100 per metric ton and has recovered from an 18-month low reached earlier this month. If Lead can break resistance, it could be potentially gearing up for a sustainable uptrend.
Why Trade CFDs on Metals with PXBT?
PXBT offers a wide array of tradable metals and other Commodities, as well as features Forex and CFDs on major Indices. Moreover, it is fully regulated, and it uses the industry-best MetaTrader 5 platform. This ensures that traders can access a safe, convenient, yet accessible and powerful environment. The trading experience with PXBT also includes low fees, tight spreads, and a seamless mobile app.
Want to trade CFDs on Metals with enticing trading conditions? Learn more about PXBT
Disclaimer: The information provided herein is for informational purposes only and does not constitute personal recommendation and/or investment advice. Past performance is not a reliable indicator of future results. The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be appropriate for every investor. You should carefully assess whether you understand how these leveraged products operate and whether you can tolerate the high risk of losing your money. PXBT Trading Ltd does not serve clients from Restricted Jurisdictions as listed on its website.
Contact Person: Mike Karkhalev
Company: PXBT Trading Ltd
Email: press@pxbt.com
Address: IMAD Complex, Office 3, Ile Du Port, Seychelles
