Oil surges as US-Iran clashes spike inflation — load up on gold and gold miners
Oil prices are climbing for a third day straight as military clashes between the US and Iran threaten a fragile peace deal, pushing inflation higher. Meanwhile, the Federal Reserve's latest report confirms inflation is heating up, which is driving investors to dump risky assets like Bitcoin and buy safer assets like gold.
Idea
The renewed fighting between the US and Iran is disrupting global oil supplies, which pushes gas and energy prices higher for everyone. The Fed confirmed today that this Middle East conflict is already driving up inflation across the country, making it less likely they will cut interest rates. Historically, when inflation rises and geopolitical tensions spike, investors flee risky assets like crypto—we just saw $1.5 billion in Bitcoin bets wiped out today—and park their money in safe havens like gold. Presto Research specifically noted that Bitcoin's crash is fueling a rally in gold, making this the perfect storm for gold miners to surge.