Gold vs Oil: Oil Shock Drives Gold Lower as Yields and Dollar Surge
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Gold is under pressure as rising oil prices drive inflation, boost yields and the dollar, and weaken its safe-haven appeal despite growing geopolitical and recession risks.
Gold (XAU) is under pressure as a sharp surge in crude oil shifts the entire macro landscape and drives yields higher. In my view, this unusual setup is keeping gold on back foot in the short term, despite rising geopolitical tensions and growing recession risks. This article break down how oil, inflation, interest rates and market stress are shaping the next move in gold and where prices could head in the coming weeks.