I welcome all my friends brothers and sisters on this Platform. I am at the beginning to learn on this Platform. My question is that. How does war affects on Oil, Gold and Currency prices.
War usually causes oil and gold prices to go up due to uncertainty and disruptions, while currencies often become unstable, with safe ones like the US dollar tending to get stronger. Actually, it depends on which countries are at war and which ones are winning or losing.
Welcomeeee! Hmm.
Apart from what the others have shared, wars and other similar conflicts also affect the behavior of some traders.
A significant number of traders tend to move towards the “safe” currencies like CHF when trading.
Oil is a very current example of geo politics risk.
Yesterday Libya announced oil field closures & oil jumped - the rally was faded today.
Geo political rallys should always be viewed with caution.
Same thing again Thur/Fri
This time it was Iraq that caused the rally - mere rumours Fri re OPEC and then came the fade.
Spot crude oil gonna crash for nine days
In my experience, wars tend to push oil prices up due to supply concerns, gold goes up as people flock to it for safety, and currencies from stable economies like the USD, CHF, and JPY usually strengthen while others weaken.
And ongoing geopolitical tensions too! There is the one happening in SK, especially martial law which is affecting the Asian market. On the other hand, Trump’s tariff threats are keeping the USD strong against other major pairs. It’s definitely been an interesting time in the market!
War often increases oil and gold prices due to supply fears and safe-haven demand, while currencies can become volatile, with riskier ones weakening and safe-haven currencies like USD or JPY strengthening.
Gold up
Oil down in war
At the moment gold is coming down though
War and specific political movements are needed for gold to go up and oil to come down during war
Another reason is the economy is driven by the manufacturing sector which increases at time of war
Which sends gold up , so add to that politicians that don’t know how the economy works and lacks support of manufacturing prospects will send gold down even if there is war