Gold prices vs Oil prices (Must Read)
We have hear lot of about strait of Hormuz, if Iran stop supply completely through this path then 95% effect take Japan and over 50% effect take by china, Russia made agreement in which they sell cheap oil through pipe lines and more but China Japan and Europe take effect 100% nearly.
Just 5-7% supply makes through strait of Hormuz which is for America, America is also a strong oil producer, they just import 20-25% of their oil in which 70% oil import from Canada and maxico, and also illegally from brazil, just 5-7% oil import from strait of Hormuz.
So now if we look overall situation then we have seen that USD (Dxy) index strong against other currencies, bcoz other countries Japan, China Europe economy weak due to lack of oil.
Middle east also suffer losses so overall there is some best opportunity to hold above 110 dxy, which is very bold claim but if war begins and remain intrupted supply of oil then dxy index touches 110 and gold touches easily 2700-3200 again.
Why Iran do this with middle east, Japan and china?
U.S take a signals just 1 fed cut which shows their economy is stronger after war.
Dollar is now more safe heaven then Gold (Harsh Reality)
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#GOLD #AsiaStocksPlunge OilRisesAbove$116
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