Oil Price Falling! Why Gold Prices Also Falling! Mr Loo Explains

Описание: Oil prices have fallen sharply, with WTI crude dropping below US$70 per barrel for the first time since the US-Iran war began. Brent crude has also fallen to its lowest level since before the conflict, as more tankers cross the Strait of Hormuz and markets increasingly price in a lasting peace agreement.

This is very good news for inflation.

Lower oil prices reduce transportation, logistics, manufacturing and energy costs across the global economy. Singapore motorists are already seeing lower petrol and diesel prices, while President Donald Trump is publicly calling for even lower gasoline prices in the United States.

At the same time, gold has fallen below US$4,100 per ounce. A stronger US dollar, fears of future Federal Reserve rate hikes and liquidation from a sharp stock market sell-off have all pressured precious metals.

But is the market focusing on the wrong story?

If oil prices continue to fall, inflation may ease faster than expected, potentially reducing the need for future rate hikes. In this video, we examine what the collapse in oil prices means for inflation, interest rates, gold, and the outlook for investors.

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