All articles tagged with #geopolitical uncertainty
Gold prices are on track for a weekly gain of about 3.9%, reaching near record highs, driven by weaker-than-expected US job growth, geopolitical tensions, and expectations of Federal Reserve rate cuts, with projections of gold potentially surpassing $5,000 in 2026.
Central banks worldwide are increasing their gold reserves despite record-high prices, viewing gold as a strategic, liquid asset to diversify holdings and hedge against geopolitical and economic uncertainties, including concerns over the U.S. dollar and fiat currencies.
Gold prices are on track for their strongest weekly increase in three months, reaching a record high above $3,500 per ounce, driven by expectations of a US Federal Reserve interest rate cut and safe-haven demand amid geopolitical and economic uncertainties, with traders awaiting the key US non-farm payrolls report.
OPEC+ has decided to delay increasing oil production due to a weak global demand outlook, extending current production cuts until the end of 2026. Eight members will maintain a 2.2 million-barrel-per-day voluntary cut into early 2026, with gradual increases planned later that year. Additionally, a separate 1.7 million-barrel-per-day cut will be extended through 2026. Despite these measures and regional conflicts, oil prices remain low. The potential return of Donald Trump as U.S. President adds further uncertainty to the global oil market.
Oil prices have been fluctuating due to escalating tensions between Israel and Iran, with Brent initially surpassing $90 per barrel before falling back to $86 following Tehran's dismissal of the impact of Israeli strikes. The US has allowed its waiver for Venezuela to trade crude to expire and is targeting China's purchases of Iranian oil, while the UAE's sovereign fund is considering a takeover bid for a Spanish energy firm. Additionally, the White House is considering releasing strategic petroleum stocks, Kazakhstan is seeking $150 billion from oil majors, and the US is imposing new offshore decommissioning rules.
Bitcoin surged above $50,000 for the first time since December 2021, driven by robust demand for spot bitcoin ETFs and geopolitical uncertainty. The cryptocurrency has risen 13% in the past week and is now eyeing a range of $60,000 to $65,000 as its next level, with expectations to reach up to $160,000 by the end of 2024 and $350,000 by the second half of 2025. Despite being considered a potential safe haven asset, bitcoin's price remains highly volatile, and its market capitalization is expected to rise above $1 trillion in the near future.
Renowned crypto analyst Plan B suggests that trading around Bitcoin halving cycles can yield better returns than buy and hold strategies, with potential gains of up to 2,500%. Plan B's Stock-to-Flow model recommends buying Bitcoin six months before the halving and selling 18 months after to capture significant price increases while avoiding subsequent bear markets. BitMEX founder Arthur Hayes also highlights Bitcoin's resilience during geopolitical uncertainty, suggesting it as a potential hedge against traditional assets. Bitcoin has outperformed long-term US Treasury bonds during conflicts, making it an attractive investment during times of war.