Market winners: Commodities boom as Gold, aluminium, Wheat soar!
Gold is soaring, aluminium suppliers are booming and the threat to global wheat supply sends the food staple to record highs…it’s a tumultuous time in the financial markets.
The world is gripped by the terrifying conflict in Eastern Europe; Russia’s attack on Ukraine has pushed traders towards “safe havens” and disrupted many markets. Commodities, however, are booming.
Today, we look at some of the most traded assets on our platform for the month of February.
Most tradeable instruments monthly:
The gold price has climbed to $1,975 on February 25 on the back of the escalating Russia-Ukraine conflict. Gold has seen an influx of traders seeking the safety of the precious metal, hitting its highest level since September 2020.
Analysts predict that if the situation continues to worsen, gold could see a rally towards $2,000.
Ethereum, the world’s second-biggest cryptocurrency, is recovering from the great crash suffered by the market earlier in 2022. Ether was back up to above $2 700 after bottoming out near $2,150 in January 2022, a rally of more than 25% in less than four weeks.
Unfortunately, as the war continues in Eastern Europe, more traders will seek the security of less ‘volatile’ assets than crypto.
Netflix, once a darling of Wall Street, has fallen from grace in 2022. The stock suffered a crash following a disastrous earnings report in January 2022. Since then, however, it has curiously become a great buying opportunity, with many snapping up their share of the streaming giant at record low prices.
NFLX nearly breached $400 on February 18 and is up 6.44% in February. The company announced it is spending millions to acquire new film and series rights for European productions. An investment it is hoped will pay off with thousands of new subscribers for the streaming service.
Biggest percentage move monthly:
Stock: ALCOA 31.50%
Aluminium supplier Alcoa is growing from strength to strength in 2022; it has hit 11 new highs and, at $80 on February 2022, is up 30.22% in the last month. This translates to a 270.27% gain in the last year. Ongoing supply issues affecting the aluminium market have sent the common metal soaring in the past month, a boon for a company such as Alcoa.
Commodities: WHEAT 13.20%
The price of global food staple wheat hit record highs of 31% to just below $10/bushel. Russia’s invasion of Ukraine is threatening to cut off vital international shipments of wheat, creating shortages and pushing the price of the vital crop higher. Together, Russia and Ukraine produce nearly a quarter of the world’s wheat. As the conflict drags on disruptions could fuel higher food prices and ignite social unrest globally.
Crypto: SHIBUSDT 6.39%
Shiba Inu coin, the meme that became a legitimate cryptocurrency, has seen a huge rise in its value recently. This is due to Binance Custody, a cryptocurrency insurance platform, adding Shiba Inu to its platform, raising the price of the meme-coin by nearly 7%.
With the new platform adopting the meme-coin, experts predict that Shiba Inu coin could hit $0.000088 by the third quarter of 2022.