[Commodity Storylines] Global Gold & Oil Market Trends Grab Headlines

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The situation for global commodities is closely linked to future trends in international affairs. Commodities are global in nature; they are bought and sold between companies on an international exchange platform. But since the Covid-19 pandemic governments that control vast reserves of natural resources have stepped up efforts to nationalize them.And now with the escalation of the Middle East war between Israel and Hamas, the geopolitical risk took a step higher than it already had been ever since Russia’s invasion of Ukraine in 2022.

Gold continues to be bought by central banks around the globe!

There are essentially three market drivers for the rising gold prices this year: safe-haven demand against US inflation, gold exchange traded funds (ETFs) and central-bank purchases of physical gold bars. The latter is significant to geopolitical trends because it shows how seriously the world is taking the USD currency’s uncertainty as the world’s reserve currency in the future.