Jump to content

Key commodities being affected by the Russia-Ukraine crisis


Recommended Posts

In this article we take a look at some of the key commodities (gold, oil, platinum, palladium and natural gas) affected by the current geopolitical turmoil, and how they are reacting right now.

bg_mining_commodities_1358413.JPGSource: Bloomberg
 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Thursday 24 February 2022 

Following the announcement of fresh sanctions on Russia by the West, Russian president, Vladimir Putin, has initiated an attack on the Ukraine which is seeing elevated volatility in the market.

In this article we take a look at some of the key commodities (gold, oil, platinum, palladium and natural gas) affected by the current geopolitical turmoil, and how they are reacting right now.

Russia’s percentage share of key global commodity production in 2021

Screenshot%202022-02-24%20at%2012.41.39.Source: IG


The above graphic shows the percentage share of global production from Russia in 2021, as sourced from Refinitiv workspace. While we have seen base metals like aluminum and nickel rallying to new highs, Russia’s contribution to global output appears less signficant in this department when compared to diamonds, precious metals and energies.

Precious metals

The country is a key producer of platinum group metals (PGMs) most significantly palladium (40% of global production in 2021).

Russia is also the third largest gold producer in the world accounting for roughly 10% of global production. Gold prices are being further elevated by increased safe haven demand through the conflict.

palladium%202402.pngSource: ProRealTime


The price of the march contract for palladium has moved aggressively through the $2400/oz mark to test resistance at $2610/oz. A close above this level could unlock further gains with $2740 the next upside resistance target from the move.

palladium%202%2024022.pngSource: ProRealTime


Since breaking out of a bullish triangle consolidation, the price of platinum has pushed through resistance at $1075/oz and $1105/oz. Pullbacks within the new uptrend consider long entry with $1150 the next upside resistance target from the move.

gold%202402.pngSource: ProRealTime


Safe haven appeal is seeing gold now move to test the upper resistance level ($1960/oz) of the broad range which has been in place for the last two years or so. A break above $1960/oz could see $1995 and $2070/oz as further resistance targets from the move.


Russia is also believed to have the largest deposits of diamonds in the world and is the largest producer of rough diamonds.

Oil and gas

In terms of energies in recent years, gas supplies have accounted for 17% of the global total and nearly a third of supply to Europe. The country is an ally of the Organisation of Petroleum Exporting Countries (OPEC) which has been keeping oil supply throttled, despite increasing demand through an economic rebound from the pandemic.

brent%202402.pngSource: ProRealTime


The long-term trend for Brent crude remains firmly up, with the short-term momentum pushing the price to our upper channel resistance target of $100.60/barrel.

Pullbacks within this uptrend are considered buyable with a longer-term upside target of $119/barrel projected from a Fibonacci extension.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 29/09/23 19:22
  • Posts

    • The crypto market appears to be showing signs of recovery, with significant improvements in the Sharpe Ratios of Bitcoin, BGB, and Ethereum, according to an article published on Friday.  The Sharpe Ratio, a measure used to understand the return of an investment compared to its risk, has seen a notable increase for both cryptocurrencies. Bitcoin's Sharpe Ratio has risen from -2.4 to 0.68, while Ethereum and BGB have also experienced a similar uptrend. This change signifies higher returns at lower risk, which is expected to attract more investors to the crypto market. In addition to the improved Sharpe Ratios, increased network activity and trading volume as shown on CEXs like Bitget, Binance, and a few DEXs are suggesting a healthier market state. The current trading prices of Bitcoin, reflect this overall positive market sentiment. As of Friday, Bitcoin was trading at $27,069.73, BGB at $0.454 and Ethereum at $1,677.89. These developments are significant as they indicate reduced risk in the crypto market. The increase in the Sharpe Ratios for Bitcoin, BGB, and Ethereum suggests that these cryptocurrencies are becoming less risky investments, which could potentially lead to an influx of new investors into the market.  Could this rise in Sharpe Ratios coupled with increased network activity and trading volume point towards a recovering and less risky crypto market?
    • Hi, That's great, thank you very much. Very helpful! Many thanks.
    • Texas Instruments Inc., Elliott Wave Technical Analysis Texas Instruments Inc., (TXN:NASDAQ): Daily Chart, 29 September 23 TXN Stock Market Analysis: We have been moving lower as expected from the previous forecast. Looking for continuation lower as there is an incomplete bullish sequence. Looking for extension lower in wave {iii}. Downside target stands below wave (W). TXN Elliott Wave Count: Wave {iii} of C. TXN Technical Indicators: Below al averages.   TXN Trading Strategy: Looking for shorts on the way down.   TradingLounge Analyst: Alessio Barretta Source : Tradinglounge.com get trial here!       Texas Instruments Inc., TXN: 4-hour Chart, 29 September 23 Texas Instruments Inc., Elliott Wave Technical Analysis TXN Stock Market Analysis: As we are getting an overlapping structure in what could be a wave {iii} there is a high chance we will see an acceleration lower to then see a series of fours and fives.   TXN Elliott Wave count:  Wave (iii) of {iii}. TXN Technical Indicators: 20EMA as resistance. TXN Trading Strategy: Looking for shorts on the way down.
  • Create New...