Gold prices extended to US$ 3316.14 per ounce, while WTI crude oil surged to US$ 64.55 per barrel following the Federal Reserve’s speeches and escalation in geopolitical tension. Here are some updates:
The Federal Reserve
Another two Federal Reserve members voted for the “wait and see” policy approach once again last night, as risks are likely to come from both sides—inflation and labor market conditions—from the tariff effects. In fact, they stressed whether these tariffs may come as a one-time thing or are likely to become a persistent inflation over the long run.
Geopolitical Tension: Israel-Iran
According to CNN, new US intelligence stated that “Israel is preparing for a potential strike on Iranian nuclear facilities,” which could hinder any progress of negotiation and increase volatility in the Middle East. Although Trump’s dismantlement of nuclear program negotiations with Iran could possibly lead to easing tension, Israel’s last night move could be seen otherwise. Meaning that this could be a potential threat that possibly leads to large-scale war escalation and results in many deaths, just like what happened in Gaza. However, whether Israel’s strike comes or not is yet to be confirmed.
“Golden Dome”- President Donald Trump
Trump is growing frustrated with the arising threat of tension between nuclear-armed countries; he has now proposed to build the missile defense system called “Golden Dome,” which can envision both ground-based and space-based capabilities, able to detect and intercept missiles at different stages of flight. This dome will be done in about 3 years, and will cost an estimated $175 billion.
