Oil is getting cheaper, gold is getting more expensive: what is behind the sharp fluctuations in global markets?

Significant fluctuations are being observed in the global energy and precious metals markets. Against the backdrop of a temporary ceasefire reached between the US and Iran, the price of Brent crude oil dropped sharply, falling to approximately the level of $91–92 per barrel.

According to BAKU.WS, due to the persisting uncertainty factor, high prices are being maintained in the gold market - the price per ounce fluctuates in the range of $4,700–4,800.

The current geopolitical situation once again confirms that the pricing of energy resources and precious metals is not limited solely to factors of war or peace. As emphasized by the Chairman of the Azerbaijan Society of Appraisers (ASA) Vugar Oruju, these processes are shaped under the influence of a broader spectrum of factors - global demand, production decisions, and international economic relations:

"Oil and gold prices do not depend solely on the war factor. The world oil price is determined primarily by the decisions of OPEC and its associated structures, as well as the level of demand from the largest consumer countries - China, the US, and others.

War has a certain impact, however, the key decisions are made precisely by these structures, and price changes are primarily linked to these factors. As for gold, in conditions of uncertainty and military conflicts, prices tend to rise. But if a peaceful environment is established, stabilization or a decline in prices is possible after a certain period of time.

Overall, the world economy is currently at a stage where economic and political relations in the near term will be accompanied by increasing interdependence, risk distribution, and the search for a new balance."

Orkhan Huseyn