Peculiarities of Pricing in the Oil and Precious Metals Markets Amid Geopolitical Instability

This research aims to investigate the relationship between price indicators in major commodity markets (the market for oil and precious metals (gold, platinum, and silver)) and identify and assess the reasons for this emerging relationship. The research also discusses the main factors influencing the formation of prices in these markets. The authors use price statistics for 1960–2023. Descriptive statistics and correlation analysis are used to determine the nature of changes in the link between oil and precious metals prices. The research objects are countries engaged in exporting and importing oil, gold, and silver. There is a long-term positive correlation between oil costs and valuable metals. The price of oil is one of the determining factors in the formation of gold, platinum, and silver prices. The price of oil can be used to predict price changes in the metal market. The author analyzed the correlation between oil prices and basic precious metal prices over the past 63 years. The research revealed that the prices of oil, gold, platinum, and silver have a positive high correlation with each other, ranging from 0.88 to 0.95. Thus, a change in prices for one of the analyzed goods is accompanied by a change in prices for other goods. In times of uncertainty, oil, gold, platinum, and silver prices are likely to increase. Geopolitical instability can drive price fluctuations across various commodities.