The thesis is that Saudi Arabia might try influencing the U.S election by raising Oil prices in order to ensure President Biden loses to Donald Trump. Historically, no U.S President has won an election when the price Oil has traded near the $100 a barrel mark.
Gold’s Unstoppable Climb in the Commodity Market
Elsewhere in the Commodity markets, one of the real star performers is Gold.
Gold’s meteoric rise to glistening new heights has continued to go from strength to strength this year, significantly bolstering its iconic status as the ‘must-have’ asset class in every portfolio.
On Friday, Gold prices skyrocketing to a new all-time record high of $2,431 an ounce, surpassing the precious metals previous all-time high of $2,376 an ounce that had been set only a day earlier.
The precious metal is up over 23% since mid-February. But more impressively, Gold prices have now chalked up an incredible gain of more than 35% since October.
Analysts at GSC Commodity Intelligence believe the ratio between two of the world’s most-traded Commodities is “worth paying close attention to”.
Oil prices tend to be supported during periods of sticky inflation, while Gold is traditionally used as a hedge against inflation. This positive correlation indicates that higher Gold prices often coincide with higher Oil prices.
Source: Want To Know Where Oil Prices Are Heading Next? Then Keep An Eye On Gold
