However, it will depend upon the impact that rising prices will have on consumer spending and corporate balance sheets.
Geopolitical tensions could have an impact upon the price of commodities most notably: oil and gold. As various uncertainties around the globe, could have an impact upon the availability of oil supplies, which will cause prices to increase. A good example of this can be seen with the different protests that are occurring in: the various Middle Eastern and North African countries. As the numerous acts of civil disobedience have caused a number of countries that are large exporters of crude oil (such as: Libya) to suspend production. The reason why, is because they are: having to wrestle with their own internal security situation. As a result, oil prices rose to above $100 per barrel, on concerns about available supplies. This would have an impact on gold prices, because many investors...
[ View Full Essay]