On Monday, the trading sentiment was still determined by a non-stop slump in oil prices. According to Ole Hansen, head of commodity strategy at Saxo Bank A/S, the Bloomberg Commodity Index of 22 raw materials sank to a 5.5-year low last week. It is explained by the sales dynamic in the oil sector. Thus, WTI and Brent Crude, the two grades used as benchmarks in oil pricing, have lost 20% of their cost since November 27.
Interestingly, amid malaise on the commodity market, precious metals have been going upwards for the second week in a row despite the overall bearish bias. In particular, silver bounced from its lows. Gold also entered the bull market and hit a six-week high.
Experts think both precious metals are showing the positive dynamic as a response to the current profit taking on the U.S. dollar market. Besides, both gold and silver markets gained extra support in the context of sluggish stock markets last week. Meanwhile, the energy sector has taken another nosedive in contrast to the precious metals market.
