US sanctions push up oil prices, gold still has long-term upside potential after correction 251029

$Meta Platforms(META.US)

Recent significant changes have occurred in the commodity market, especially in major commodities such as crude oil, rare earth minerals, and gold. New U.S. sanctions on Russia have driven up crude oil prices, affecting the two largest Russian producers, Rosneft and Lukoil, leading to potential supply shortages in the global oil market. According to simulations, if these two companies continue to face major export disruptions, oil prices could rise by nearly $20 per barrel by 2026.

However, the impact may be limited by the replenishment capacity of other OPEC producers, and demand for Russian crude may decrease due to exemptions. Although the reaction to this news has been relatively mild, there remains some volatility. On the other hand, rare earth minerals are playing an increasingly important role in global trade and geopolitics. Although this market is relatively small, it is crucial for the production of defense products and advanced technologies. China's dominance in the rare earth market makes these resources a bargaining chip, and investors can gain exposure through rare earth-related stocks. Finally, the gold market has seen a remarkable rally this year but recently experienced a significant pullback. This correction was mainly due to overly rapid price increases and speculative position adjustments. Nevertheless, the long-term outlook for gold remains optimistic, with expectations of continued growth next year, supported by central bank purchases.

Overall, the volatility and uncertainty in the commodity market have led investors to place greater emphasis on diversification, particularly in gold, as an effective hedge against potential risks.

Source: "XQ Global Winner" Terminal