WTI is negatively trading and Brent Crude futures for May are just about holding up to its recent decline. To add injury, global stock markets crashed also.
The issue with oil prices is that with less airlines operating and global lockdowns of movement, there is an over supply versus demand. This impacted WTI and will also at some point do the same to Brent Crude. Will central banks continue to flush the system with liquidity in times of black gold crisis and disregard the importance of physical gold holdings for their reserves?
This can be further articulated in the below link that provides an overview on current market situation. The largest country oil producers are evaluating their options.
So what does it mean for physical gold holdings and accumulations? We need to understand the relationship of oil prices with currency devaluations and its effect on gold prices.
At the moment, the sharp move down in oil is bullish for gold prices, according to analysts.
We know gold prices will react, but until then, we look forward to your comments on this post.
https://finance.yahoo.com/news/saudi-arabia-may-route-tankers-141430393.html
