Oil and gold become more expensive as the world fears

Gold it costs the most in two months today - about $ 1840 an ounce. The bullion price hikes seem to justify: concerns about inflation, lower US bond yields and increased demand for safe assets after a possible correction on Wall Street.

In December, an ounce of gold cost about $ 1760. However, inflation seems to be dragging the bullion's performance higher. Annual readings of price dynamics in the world's major economies reached their highest levels in decades. Suffice it to mention that the American consumer price index rose in December at a rate of 7 percent, the highest in nearly 40 years.

Gold could also gain as the yield on US 10-year treasury fell below 1,8% on Friday, falling from the 2-year high of 1,9% at the beginning of last week.

Geopolitical tensions have increased the attractiveness of gold as a safe haven. The Americans and the British have already ordered the evacuation of personnel from Kiev, fearing Russia's invasion of Ukraine.

The specter of conflict is the demand for oil

It is also getting more expensive Petroleum. The WTI futures contract surged above $ 85 today after briefly dropping below $ 83 last week. Here, geopolitical tensions may have heightened fears of supply disruptions.

US President Joe Biden is to consider sending several thousand troops to allies NATO in Eastern Europe and the Baltics. A high-ranking British minister also said Russia would have to face severe economic sanctions if it wanted to take power in Ukraine.

Elsewhere in the world, the United Arab Emirates defense ministry said today it had destroyed two ballistic missiles that the Yemeni Houthi movement was expected to target at the Gulf country.

The combination of so many factors of uncertainty and risk, along with less severe restrictions and shortening quarantine periods in the world due to the coronavirus, may increase the demand for oil.