The global commodity markets, stock markets and economies of various countries are coming back on track in 2022, which is a very good sign. The governments are pumping funds in the economy and the stock markets in various countries are touching all-time high figures. The leap in global financial markets has also helped in the surging of the US dollar. Due to improved global economic conditions, the commodity market is also witnessing some major growth. As all the industries and sectors began to work in full swing, a massive-growth was seen in the international crude oil market.
Most of the manufacturing industries rely on the constant supply of metals to achieve their production goals. Due to the presence of some factors, the price movement might get affected. There was some supply constraint and industrial sectors were affected due to unavailability of base metals. In 2022, the global commodity market started its journey riding on the wave of optimism. The sustained economic growth is generating confidence in the heart of the investors.
The performance of the crude oil
The OPEC+ has confirmed its plan to produce more than 4,00,000 barrels per day in February 2022. Already, the Brent crude has crossed the figure of $80 per barrel. As more and more industries are operating to their full strength, the pressure to speed up production is also going up. Countries like Mexico, Venezuela and even Russia are trying to push up production. Only by raising the level of output, they can meet the demand figures.
The gold is likely to shine in 2022
Many experts are optimistic that the precious metal gold will perform impressively in 2022. There is even an estimate that the gold price will surge exponentially and the precious yellow metal will perform impressively.
The demand for silver in 2022
The demand for silver is likely to go up because this metal continues to remain popular despite the emergence of several “greener technologiesâ€. Electric vehicles also use silver in vast quantities. Similarly, the next-generation mobile technology also uses silver. All this is going to give a big boost to the silver market in 2022. The US senate has already passed the massive $1 trillion infrastructure bill. It is likely to generate more demand for silver. In 2021, the demand for silver reached 1.029 billion ounces. It was for the first time that demand touched a remarkable figure in 2015. Apart from manufacturing industries, silver is required in jewelry and other sectors.