BTS member Jin’s absence from the credits of the group’s latest album has sparked a debate among fans after what has been seen as a tense moment during a live broadcast went viral. BTS held a full-group live stream last Friday to celebrate the release of their fifth full-length album, Arirang, where members discussed the production process and revealed some behind-the-scenes stories. During the br...
BTS member Jin’s absence from the credits of the group’s latest album has sparked a debate among fans after what has been seen as a tense moment during a live broadcast went viral. BTS held a full-group live stream last Friday to celebrate the release of their fifth full-length album, Arirang, where members discussed the production process and revealed some behind-the-scenes stories. During the broadcast, RM said, “Everyone’s colour is in the album”, before adding, “If Jin’s tour had ended a bit...
Oil prices have dropped as the US makes a diplomatic push to try to end the war with Iran. Bloomberg's Rong Wei Neo reports on the latest. (Source: Bloomberg)
Oil prices have dropped as the US makes a diplomatic push to try to end the war with Iran. Bloomberg's Rong Wei Neo reports on the latest. (Source: Bloomberg)
Nadzeya Haroshka/iStock via Getty Images Two Channels, One Shock Gold has declined sharply since the U.S.–Iran war triggered an oil price surge, with prices almost erasing year-to-date gains. Two distinct transmission channels explain the move, both originating from the oil shock. Higher real rates The real rate is the nominal bond yield minus inflation expectation, and it was once the primary lon...
Nadzeya Haroshka/iStock via Getty Images Two Channels, One Shock Gold has declined sharply since the U.S.–Iran war triggered an oil price surge, with prices almost erasing year-to-date gains. Two distinct transmission channels explain the move, both originating from the oil shock. Higher real rates The real rate is the nominal bond yield minus inflation expectation, and it was once the primary long-run anchor for gold. The U.S. 10Y nominal bond yield ( US10Y ) has been on the rise since early March, moving up from 3.96% to 4.39% as a result of the escalating Middle East conflict fueling energy prices and renewed inflation concerns. Similarly, the 10Y breakeven inflation rate has also moved up from 2.25% to 2.38% during this period of time, resulting in the 10Y TIPS (measure of real interest rates) moving up from 1.70% to 2.00%. Gold generates no income; when the risk-free rate rises, the opportunity cost of holding gold rises, and capital rotates out. The mechanism is consistent across cycles. However, the relationship has weakened since 2022. Gold continued to rise alongside higher real yields during 2022–2025, supported by strong central bank buying, geopolitical risk hedging demand, and persistent U.S. fiscal deficits. Petrodollar funding squeeze While the long-term inverse relationship between gold and real yields still carries some explanatory power, it has materially weakened since 2022. This suggests a second channel is playing a large role in the current gold price decline: a global dollar funding squeeze. Oil-importing economies, including China, India, Europe, Japan, and South Korea, collectively purchase about 70% of global crude. With oil prices up more than 40%, the dollar cost of the same energy volume has risen sharply. These countries must secure materially more dollars against export revenues and cash flows that adjust slowly. The resulting demand shock for dollars is structurally inelastic: energy imports cannot be deferred, and adding to that is m...