Gold, crude oil, and cryptocurrencies are soaring to new heights, making a positive shift for commodities and cryptocurrencies in recent weeks. Today’s post will give you an update on how things stand with the different commodities and the possible factors leading to the positive price movements for these assets to help you make more well-informed investment decisions.

Cryptocurrencies

Cryptocurrencies have started making headlines again as Bitcoin rose past the $66,000 mark during the first week of November. Subsequently, the rest of the crypto world followed suit, with Ethereum inching close to the fabled $5,000 mark and Solana almost hitting the $260 mark. However, Bitcoin, ether, and several major coins are navigating turbulent waters again as anti-crypto comments from Twitter’s CFO hurt market sentiment regarding cryptocurrencies. At writing, Bitcoin was trading for $60,304, ether has dipped to $4,267.72, and Solana is down to $220. It remains to be seen how the bearish sentiment pans out in the coming weeks.

Gold

Gold has long been the traditional safe-haven asset that investors flock to during turbulent markets. It is an excellent store of value that appreciates during equity market downturns and depreciates when markets are soaring, effectively moving inversely proportional to the broader economy. For gold traders, little else matters more than the bond market. Gold prices are hovering around the $1,800 mark. At writing, the rare yellow metal is valued at $1,874. As the economy continues to reopen, it seems unlikely for the bond and stock markets to see any downturn in the coming months. Gold prices are likely to sustain themselves at these levels. Provided that there are interest rate hikes in the bond markets as we move towards 2022, it is possible for gold traders to shift their focus towards bonds for better yields.

Crude Oil

The global energy industry faced significant challenges due to the pandemic-fueled conditions completely decimating demand for the commodity. 2021 has been an entirely different picture for the industry as global economies reopen and the demand for crude oil surged. From entering negative territory last year to recovering to its current levels, crude oil could see yet another boost. Iran recently signaled that it is willing to restart negotiations regarding its nuclear program with the US and President Biden is weighing tapping the SPR. Oil production in the US is higher now, and OPEC+ has shown reluctance to increase production faster despite the short-term crude demand surge. At writing, WTI crude oil is valued at $81.28 per barrel, but it could have a long way to go. According to a recent Bloomberg report, Brent crude oil could soar past $250 per barrel, effectively hitting new record highs since 2008.