Is a New Rally Starting in Gold and Silver as Oil Surge Sparks a New Inflation Cycle?
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Gold and silver are rebounding from their respective decision zones as oil above $100 lifts inflation, and rising geopolitical risks could drive a rebound if safe-haven demand returns.
WTI Oil (CL) spiked above $100 on escalating tensions in the Strait of Hormuz, prompting expectations of higher inflation and resulting in higher yields and the US dollar. I believe this development is consistent with short term consolidation in precious metals as investors rotate into oil. This article examines how oil-driven inflation impacts gold (XAU) and silver (XAG) by analyzing their historical relationship across major events.