Want To Know Where Oil Prices Are Heading Next? Then Keep An Eye On Gold – FX Empire

The argument is that Saudi Arabia may try to influence the US election by raising oil prices to ensure President Biden loses to Donald Trump. Historically, no U.S. president has won an election when oil prices were trading near $100 a barrel.

Gold’s unstoppable rise in commodity markets

Elsewhere in the commodity market, one of the real star performers is gold.

Gold’s meteoric rise to glorious new heights continues to go from strength to strength this year, significantly reinforcing its iconic status as a “must-have” asset class in any portfolio.

On Friday, gold prices soared to an all-time high of $2,431 per ounce, surpassing the precious metal’s all-time high of $2,376 per ounce set just one day earlier.

The precious metal is up more than 23% since mid-February. But what’s more impressive is that gold prices have recorded an incredible increase of more than 35% since October.

Analysts at GSC Commodities Intelligence believe the ratio between the world’s two most traded commodities is “worthy of close attention”.

Oil prices tend to support periods of sustained inflation, and gold has traditionally been used as a hedge against inflation. This positive correlation indicates that increases in gold prices often coincide with increases in oil prices.