The commodities market investors have stepped into the choppiest month of October. The month has proved to be the worst for gold, silver and Brent and the second-worst for U.S. crude oil and copper.
The October month showed a jerky start for the commodities markets, and it may get worse as per history. Based on the study done by Dow Jones Market Data in 1990, the month of October has not been good for commodities like gold, silver and Brent historically. In fact, it is the only month in which copper, silver and gold witnessed losses on average. Moreover, it is the second-worst month for U.S. crude oil and copper.
October has proved to be the jerkiest month even for stocks, over the previous 2 decades. The sharp declines in the month of August were followed by more declines in October, during 1990, 1998 and 2011. Indeed, the August and October period is the time in history when the market is highly volatile, said Chris Verrone, Head of Technical Analysis, Strategas Research Partners.
The commodities market investors, as well as the stock market investors, are entering the toughest seasonal stretch.
Expect for the unexpected things, and be ready to face and get used to “bigger swings,” Julian Emanuel, Executive Director – U.S. Equity and Derivatives Strategy, UBS, advises the investors. The advice can be a hope for investors who expect peace after the recent stock market volatility.
The market will stay to be volatile even though it witnesses a positive bias and we are expecting for a fourth-quarter rally. The market correction has not been done completely, and the repair process might take several months, said Verrone, according to a report on Bloomberg. The repair process is returning back and weakening initial lows, Verrone added.
The commodities market investors have entered the jerkiest month of the financial year, as reported on WSJ.
The post Commodities Market Investors Enter Choppiest Month Of October appeared first on OWLT Market.
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