Institution: Global Economy More Resilient to Oil Shock

BlockBeats News, April 11th. A research report from a U.S. bank on April 10th pointed out that since the 1970s, the global economy's reliance on oil has gradually decreased: today, only one-third of the amount of oil is needed to produce the same scale of GDP as in the 1970s. The OPEC crisis and subsequent oil shocks were once seen as a severe stagflation shock. However, today, the economy is more resilient to a similar magnitude of energy shock.

A research report from Huatai Securities stated that since March, the geopolitical impact has affected global risk appetite, but gold has not shown its safe-haven properties as expected, instead moving up and down with risk assets. Since the U.S.-Iran conflict in March, the maximum drawdown has exceeded 17%, then rebounded from the bottom as signs of easing appeared in the situation. The institution believes that the reasons for this round of gold correction include crowded positions in the early stage, liquidity shocks, some central banks selling gold, and the diversion of funds from energy products.