With ongoing geopolitical conflicts and high levels of inflation, the financial markets continue to experience heightened volatility.
Consumers will be interested to note that the previous week has been tumultuous for the commodities market while technology giant, Intel, has performed strongly.
Kate Leaman, chief market analyst at AvaTrade notes the volatility of commodities, she said, “Looking at our most rising table* last week, Intel experienced an increase in value following news that the technology giant will build a semiconductor chip factory in Israel.
“With Intel set to invest $25 billion and Israel’s government contributing $3.2 billion to help produce the facility, this news has encouraged traders to invest in the firm.
“On our most falling table* last week, palladium saw its value nosedive considerably. As electric vehicles increase in popularity, catalytic converters that utilise palladium in production are declining in demand. As a result, 2023 emerged as the metal’s worst yearly performance in 16 years.
“What’s more, natural gas also witnessed a drop in value. This follows unexpected mild weather forecasts in December that lead to lighter demand than usual.
“However, it is important to note that analysts are expecting colder weather conditions in January. We expect this to be reflected in our rising and falling tables in the weeks to come.
“With weak global economic growth anticipated, the demand for oil is expected to decline, resulting in the decrease in value of heating oil.
“Additionally, warmer than expected weather conditions in December also played a factor in this decrease. Given ongoing geopolitical conflicts, it is vital to keep in mind that this commodity may continue to experience volatility.”
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