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