In times of war, one might expect the gold market to soar, but recent trends show otherwise. War impacts commodities in complex ways, and the recent Oil War is no exception. Traditionally, gold is considered a safe haven in tumultuous times, but we’ve observed a downward trend in gold prices during the on-going Oil War.<\/p>
There are several reasons for this. The primary one is the deflationary pressure put on global commodities by the oil price war. Oil is a major input in global economic activity, and an increase in the oil price often results in a rise in inflation, which benefits gold.<\/p>
However, in a price war, oil prices plummet. This situation acts like a tax cut for consumers and businesses, which can initially raise economic activity, but it also lowers input costs globally, which is deflationary. And a deflationary environment is not typically ideal for gold.<\/p>
So, even though there is economic uncertainty and volatility due to the Oil War, the deflationary impact of lower oil prices is a powerful force that can bring gold prices down. This is the real reason gold is down, even in the throes of an Oil War. \nRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":" In times of war, one might expect the gold market to soar, but recent trends show otherwise. War impacts commodities in complex ways, and the recent Oil War is no exception. Traditionally, gold is considered a safe haven in tumultuous times, but we’ve observed a downward trend in gold prices during the on-going Oil War. […]<\/p>\n","protected":false},"author":1,"featured_media":10251,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[16],"class_list":["post-10249","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-finance"],"_links":{"self":[{"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/posts\/10249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/comments?post=10249"}],"version-history":[{"count":1,"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/posts\/10249\/revisions"}],"predecessor-version":[{"id":10250,"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/posts\/10249\/revisions\/10250"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/media\/10251"}],"wp:attachment":[{"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/media?parent=10249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/categories?post=10249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.talupa.com\/news\/wp-json\/wp\/v2\/tags?post=10249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}