Saxo Bank: Surging oil prices reflect supply shocks, stagflation risks may force central banks to act

Golden Ten Data reported on March 9 that gold prices fell by 1% on Monday as the market feared that rising energy prices could exacerbate inflation and delay U.S. interest rate cuts. Meanwhile, oil prices soared above $100 per barrel as major oil-producing countries in the Gulf began to cut production. Nevertheless, analysts at Saxo Bank pointed out in a report: "The current surge in oil prices reflects a supply shock rather than increased demand, which intensifies the risk of stagflation and may ultimately force central banks to provide economic support. In the short term, deleveraging and a stronger dollar may put pressure on gold prices, but this does not eliminate the fundamental reason for the growing investor inflow into hard assets in recent years."