MON DEC 16 2024-theGBJournal| Gold and oil prices surged amid a mix of geopolitical tensions, central bank actions, and economic forecasts.
Gold rose 1%, reaching $2,660.53 an ounce, driven by safe-haven demand following Syria’s regime change and deepening political turmoil in South Korea.
Support for gold was further bolstered by China’s central bank resuming purchases and a strong trend in central bank buying, signaling continued price strength alongside gains in other precious metals like silver and platinum.
In the oil market, prices climbed about 2%, with Brent closing at $74.49 a barrel, marking a three-week high.
This rise was fueled by expectations of tighter sanctions on Russia and Iran, stronger Chinese economic guidance, and a potential Fed rate cut.
China’s November crude imports rose for the first time in seven months, supported by lower Saudi prices, while global oil demand growth for 2025 was revised upwards to 1.1 million barrels per day by the IEA.
Although an oil surplus is forecasted for next year due to non-OPEC+ supply increases, OPEC+ nations, including the UAE, plan to tighten shipments, signaling a complex interplay of supply and demand factors shaping both markets.
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