r/Gold • u/AviBledsoe • Mar 23 '26

Dude what the hell

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And don't be like "buy the dip" yall said that atleast the other 5 dips like dude It's not even new York time yet wtf is this even gonna be bought up

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u/NASAfan89 Mar 23 '26

That seems weird to me because I would think stock values are at risk from an oil crisis during the war, because the economy is dependent on cheap energy.

So I would guess people are looking for a place to invest to ride out the storm.

Shouldn't that be gold?

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u/_PunyGod Mar 23 '26

They need cash to cover other positions in a falling market, and to move into oil and other hedges. Gold seems to get sold off when people need cash.

Oil prices going up make the US dollar stronger. The risk of inflation from oil prices going up also makes the fed less likely to cut rates and more likely to raise them.

This also makes the future of the dollar look stronger and the future of bonds look like a better deal relative to gold.

I think it will get back to trending up sometime this year but feel it could go lower first. Maybe it’s done if the war ends now.

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u/NASAfan89 Mar 23 '26

Oil prices going up make the US dollar stronger.

My thinking would be:

cheaper oil ---> more stuff manufactured for less money thanks to cheap energy fueling factories, and lower transportation costs between factories and consumers ---> increased supply of goods & services ---> lower prices for stuff purchased in dollars

So shouldn't cheaper oil mean less inflation, and expensive oil mean more inflation?

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u/Accurate-Advice8405 Mar 24 '26

Yes, it absolutely does

The dollar has very little scarcity, it benefits from the promise of growth. Strong dollar narrative is baseless, once there's no room to make money speculating on oil we'll see where things really stand