As West Texas Intermediate (WTI) futures briefly surged 30%, the possibility of U.S. interest rate hikes came to the forefront, and gold prices fell, Bloomberg reported on the 8th (local time).
On that day, WTI futures briefly surged about 30% on the New York Mercantile Exchange, rising to $117 per barrel. This is the largest daily increase since 1988.
This is because Middle Eastern oil-producing countries began reducing production one after another as the Strait of Hormuz was blocked.
As oil prices surged like this, the possibility of the Federal Reserve raising interest rates also came to the fore. This suggests that the Fed should raise interest rates rather than lower them to prevent inflation caused by the sharp increase in oil prices.
Due to such concerns, gold prices fell. If the Fed lowers interest rates, gold prices rise, but the opposite causes them to fall.
======================================
What a situation...
