Retail traders moved decisively into commodities this week
as Middle East tensions jolted markets. The latest data showed that oil
trading volumes climbing 649% on Monday, March 2, while the number of active
oil traders rose 276% in a single day.
Capital.com recorded a 49% increase in active traders
compared to the previous Friday, with total trading volumes up 73% and executed
trades higher by 82%. Oil quickly became the second most‑traded
instrument on the platform, overtaking several popular currency and index
markets.
The platform also saw gold volumes surge 103% overnight,
signaling a powerful flight to safety.
Energy Sentiment Turns Bullish as Supply Risk Grows
The number of new traders entering oil positions jumped over
1,200%, showing how quickly retail investors reacted to shifting risk.
Bullish sentiment strengthened, with long positions rising
from 51% on Friday to 75% on Monday. The data suggests traders were pricing in
possible supply disruptions from the region.
Read more: Iran Crypto Market “In the Dark”: Trading Volumes Plunge 80% After Strikes
“Precious metals, especially gold, are typically a perennial
favourite of retail traders. They are almost always net-buyers of both
commodities. However, extraordinary uncertainty regarding global geopolitics,
trade and economic policy has only seen interest in them surge, with the crisis
in the Middle East stoking that further,” said Kyle Rodda, Senior Market
Analyst, Capital.com.
“The significant shift in activity has been in the energy
complex, as traders reassess their exposure to the volatility caused by the
conflict in the Middle East. The risk of meaningful supply disruptions in the
region is driving considerable bullish positioning for crude, though some
traders have begun to fade that move following the initial spike.”
Gold kept its lead as the most‑traded asset, with active traders
up 61% and long sentiment at 66%. The shift underscores how retail investors
continue to balance opportunity in energy with protection in safe‑haven
assets amid escalating geopolitical risk.
Conflict Affects Crypto Market
A separate report showed that crypto transaction volumes
collapsed as authorities enforced sweeping internet restrictions that affected
access to exchanges. TRM Labs reported that connectivity fell by about 99%,
cutting traders off from key platforms. Iran’s largest exchange, Nobitex,
registered roughly $3 million in additional flow activity, though analysts
attributed most of it to internal treasury movements rather than capital
flight.
With internet blackouts choking liquidity, local exchanges
scrambled to maintain operations. Wallex blamed a data‑center power failure
shared with Nobitex, revealing how centralized infrastructure can ripple
through supposedly decentralized systems.
Between February 27 and March 1,
trading volumes plunged around 80%, reflecting both evaporating risk appetite
and the sheer inability of traders to reach markets in real time.
This article was written by Jared Kirui at www.financemagnates.com.
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