Geopolitical tensions have had a significant impact on oil and gold prices. Crude oil prices experienced a temporary pause due to improved risk sentiment and the Middle East tensions not escalating as much as feared [e564090b]. However, there are still upside risks for crude oil, with the potential for a new high above $2080 due to the war in Gaza and tighter global oil supplies [e564090b]. On the other hand, oil traders are more concerned about the upcoming Federal Reserve meeting and US job numbers for October than the ongoing conflicts in the Middle East [19ea80a7]. This concern has led to oil prices falling as traders anticipate the Fed meeting and economic readings, resulting in profit-taking [19ea80a7].
Gold, on the other hand, is expected to see a major upleg and achieve new all-time-record highs [19ea80a7]. The opportunity cost of holding gold has significantly increased since the start of the war in Gaza [e564090b].
This article from the Financial Times highlights the consequences of war on the price of gold [ae1684eb]. It explains how geopolitical tensions and conflicts can drive up the demand for gold as a safe haven asset. The recent tensions between the United States and Iran are mentioned as an example of how such conflicts impact the price of gold. The shock of war and uncertainty in the global economy often lead investors to seek the stability and value of gold. While war has devastating consequences, it can also have a significant impact on the price of gold [ae1684eb].
According to an analysis from Morning Star Online, the rising price of gold indicates that a bigger, wider war is approaching [5b2b4bba]. Western leaders may deny it, but they are already waging war on several fronts. The article points out that the leaders of the imperialist powers are in denial and their main slogan is 'no escalation.' The price of gold is rising due to a move away from the dollar and the search for a stable store of value as the world order collapses politically. The situation is worse than in the past, with imperialist hegemony in the Middle East becoming unhinged, the Ukraine war faltering, and China continuing to strengthen. The US and Britain are invested in preserving the current world order, but they have no Plan B. The labour movement and the union voice need to oppose war and military adventurism. The enemy is at home, and defeating the policies of the British capitalist class is the best service the British left can render to humanity [5b2b4bba].
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