Gold and Oil Market Analysis

The price of gold denominated in the CRB index is expected to continue rising against every commodity, notably due to its role as a neutral reserve asset in intra-BRICS trade. On the other hand, the oil market faces challenges with geopolitical conflicts impacting its direction. While there is increasing spare capacity in the oil market, the US needs elevated oil prices to keep its shale production active. Geopolitically, the US aims to maintain oil prices above $70 per barrel to avoid ceding the global oil market control to Russia and Saudi Arabia. Balancing act is required to keep oil prices within the optimal range of $70 to $90 per barrel to prevent adverse effects on the US economy, as seen in past instances of prices above $85 per barrel.