Share:

Already less transitory than forecast, central bankers' inflationary crisis may be about to become more acute as they rapidly face the prospect of Oil prices rallying above $100-plus a barrel.

If you want to know where Gold prices are heading next, then just take a look at the bullish trend in Oil prices. This week, Oil prices surged above $95 a barrel for the first time since September 2014 and are hitting new record highs almost weekly.

Surging Oil prices spilling over into the rest of the commodities complex and triggering higher and more persistent inflation is one of the worst-case scenarios for central banks all over the world.

But that is exactly what could spark the next big explosive bull run in Gold.

Higher Oil prices usually feed into inflation expectations and boost demand for assets with inflation-hedging capabilities, such as the Precious Metals.

Oil’s current inflationary rally provides bullish tailwinds for all Commodities, especially inflation hedges like Gold. A rush for safe havens will inevitably be one of the primary drivers of Gold this year, as people worldwide start to feel the impact of inflation.

According to Goldman Sachs, “Inflation has even further to go before it gets better and that presents an extremely bullish backdrop for commodity prices head”.

Oil prices could very easily be trading above $100 a barrel in the next couple of months and then surge towards $150. Once that happens, Gold prices won’t be too far behind.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Share: Feed news

Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD recovers toward 1.0700 ahead of Powell

EUR/USD recovers toward 1.0700 ahead of Powell

EUR/USD has managed to stage a rebound toward 1.0700 after having dropped to a fresh multi-week low below 1.0670 in the early American session. With Wall Street's main indexes recovering from opening lows ahead of Powell's speech, the US Dollar loses interest.

EUR/USD News

GBP/USD rebounds to 1.2000 area as US Dollar loses strength

GBP/USD rebounds to 1.2000 area as US Dollar loses strength

GBP/USD has gained traction and climbed above 1.2000, erasing a large portion of its daily losses. As investors await FOMC Chairman Jerome Powell's speech, the US Dollar is struggling to preserve its strength, allowing the pair to edge higher.

GBP/USD News

Gold: Holding above $1,860, but upside still seen limited Premium

Gold: Holding above $1,860, but upside still seen limited

Spot gold saw little action throughout the first half of the day, consolidating its latest losses just above the $1,860.00 threshold. The US Dollar mainly advanced against its European rivals, as certain caution reigned ahead of a speech from US Federal Reserve (Fed) Chairman Jerome Powell, resulting in XAU/USD holding within familiar levels. 

Gold News

Google battles ChatGPT with Bard: Will this trigger rally in AI tokens?

Google battles ChatGPT with Bard: Will this trigger rally in AI tokens?

Google is getting its ChatGPT competitor ready for action, the company said that its AI service Bard would be open to trusted testers and the service is being prepared for release within the following weeks. 

Read more

Canoo Stock Forecast: Monday's GOEV plunge meets Tuesday buyers

Canoo Stock Forecast: Monday's GOEV plunge meets Tuesday buyers

Canoo (GOEV) stock is trading up more than 3% in Tuesday's premarket after a surprise share offering on Monday helped the EV small-cap to close 12.4% lower. This seemed like a major overreaction from the market, which should have seen this coming.

Read more

Majors

Cryptocurrencies

Signatures