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Gloria Mb

Oil and gold

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(edited)

How will the recent drone attack at Dubai refinery affect gold price

Edited by Gloria Mb

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Attack is in Saudi, I.e. much higher severity of anything which may happen in UAE (just a scale of oil production). 

Depends how soon Aramco manage to restart. Seen chatter about “weeks” - in this case we are looking at substantially higher oil. 

Risk of attacks repeating is another factor for futures risk premium; we may not see steep backwardation but entire curve jump upwards. 

Unsure on gold - it is retreating after strong rally; this may be a catalyst for next leg up. Or not - depends whether market believe everything goes to hell in a hand basket or see this as an isolated skirmish. My bet first move is up. Not an investment advice, do ur research elsewhere:)

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At open oil is up ~12%, Gold 1%

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It will probably go up since it is looked at as a hedge against inflation.  Unfortunately, higher crude oil prices can result in higher interest rates and inflation.

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