Gold prices are rising so much, and oil prices are falling so much, which is rare in history!
The phenomenon of rising gold prices and falling oil prices is extremely rare in history. Bank of America’s Hartnett pointed out that although oil prices are relatively cheap, they may continue to decline, with expectations that oil prices could drop to $50 per barrel in the fourth quarter. This trend helps to reduce inflation, boost Trump’s approval ratings, and benefits consumers in the United States, the European Union, and Japan, while also promoting the demand for electricity in artificial intelligence. The increase in OPEC's supply and political agreements in the Middle East are also influencing oil prices
As shown in the figure, such a large drop in oil prices combined with such a significant rise in gold prices is a historical anomaly.
However, despite oil prices being relatively cheap, Bank of America’s Hartnett believes they could become cheaper, as the best bull market surprise in the fourth quarter would be oil prices dropping to $50 per barrel (low inflation benefits Trump's approval ratings, benefits consumers in the U.S./EU/Japan, and supports demand for AI-powered electricity) due to increased OPEC supply (the Middle East reaching Trump's Gaza peace agreement is to have money to support the economy, as both Israel and Saudi Arabia's budget deficits have reached 5% of GDP).
