People want to invest or buy gold to protect themselves from volatility and uncertainty. Underlining gold’s attraction as an asset for good times and bad, most investors would buy gold whether the domestic economy was growing or in recession. The currency goes down when inflation arises and therefore people tend to hold money in the form of gold. Therefore, when inflation remains high over a longer period, gold becomes a tool to hedge against inflationary conditions. This pushes gold prices higher in the inflationary period.

The amount of Gold held by Central Banks around the world impacts the price of this precious metal. The more the Central Banks buy and store away the more the price rises

Under normal circumstances, gold and dollar share an inverse relationship. Since international gold is dollar denominated, any weakness in the dollar pushes up gold prices and vice versa. The inverse relationship is because firstly, a falling dollar increases the value of currencies of other countries. This increases the demand for commodities, especially gold.Crude oil prices change quickly in response to news cycles, policy changes, and fluctuations in the world’s markets.  In February and March of 2020, crude prices accelerated their decline in reaction to the coronavirus pandemic and an expected sharp drop in demand for oil. 

Crude oil prices fluctuates depending on supply and demand situation, future supply and reserves as well as Political events and crises. 

The supply crude oil is also determined by external factors, which might include weather patterns, exploration and production (E&P) costs, investments, and innovations

Strong economic growth and industrial production tend to boost the demand for oil. Other important factors that affect demand for oil include transportation (both commercial and personal), population growth, and seasonal changes. 

Commodities CFD traders determine the price of oil by bidding on futures contracts in the commodities market. Oil prices can change depending on what happened in the market that day. Traders consider three main factors when creating bids that determine oil prices, which are Current supply, Future supply and Demand.