The trade war between the American and China is rising and there is a huge upheaval in the currency and commodity market, which made gold glow suddenly. Gold has gone overnight at a height of one month. At the same time, till a week ago, the movement of crude oil under pressure has also changed. Saudi Arabia has indicated the cut in OPEC production next year too.
Therefore increase in prices
In the current situation, Morgan Stanley has expected Brent’s price to go up to $ 75 by the end of this year. Pawan Gupta, vice president, PP Jewelers says that the trade war is negatively impacted on the stock market. In this case, international investors will go towards Gold for secure investment. Then Gold can reach 32,000 rupees per 10 grams soon. It is too early to say how long the price of gold will continue to increase. Now it is to see where the trade war goes and what form makes it look.
Worried about Morgan Stanley
The legendary brokerage house Morgan Stanley has expressed concern about trade war. Morgan Stanley believes that global inventory is operating at the lower level of 5 years. Due to geopolitical crises, Brent Crude can go up to $ 75, because in the second half the demand is expected to increase. Such crude oil prices may also increase. Crude oil prices have seen a surge of up to 10 percent in the past 2 weeks. Due to Trade War, there is a possibility of a drop in OPEC supply in the year 2019. Saudi Arabia is in favor of reducing supply in 2019. Here, the US is preparing for economic sanctions on Iran. If Iran gets economic sanctions, supply of crude oil will decrease.