Bank of America research report: The global economy’s dependence on oil has fallen to one-third of what it was in the 1970s. Huatai Securities says gold’s safe-haven appeal has stopped working

Gate News message: On April 11, a research report from Bank of America dated April 10 said that since the 1970s, the global economy’s reliance on oil has gradually decreased. Today, the amount of oil needed to produce the same scale of GDP is only one-third of what was required in the 1970s. The OPEC (Organization of the Petroleum Exporting Countries) crisis and the subsequent oil shocks were once seen as severe stagflation shocks, but now the economy is more resilient when facing energy shocks of a similar magnitude.

A research report from Huatai Securities said that since March, geopolitical instability has hit global risk appetite. However, gold has not shown the expected safe-haven behavior; instead, it has risen and fallen in tandem with risk assets. Since the outbreak of the U.S.-Iran conflict in March, gold’s largest drawdown at one point exceeded 17%, but it later rebounded from the bottom as there were signs that the situation was easing. The institution believes the reasons for this round of gold’s correction include: crowded positioning in the earlier period, liquidity shocks, some central banks selling gold, and the diversion of capital from energy commodities, among others.