School of Science and Technology, MSc in Information & Communication Technology Systems
Since the mid-twentieth century, oil is one of the key indicators of global economic activity, because of the overriding importance of the supply of world energy requirements. Despite the emergence of alternative forms of energy (such as wind and solar), oil remains the main source of energy. Therefore, it is assumed as one of the major factors that regulate the proper function of the global economy. It is a strategic product especially for large countries, which seek to ensure the smooth flow. The price of oil, like the price of all commodities, is shaped by the forces of supply and demand while it is influenced by a multitude of geopolitical and other factors.
The fluctuation in oil prices affect the economic and social life, so it is one of the issues that concern all citizens and many researchers who study the effects that oil prices in the sizes of macroeconomics.
The precious yellow metal, gold, the last decades is for investors a safe investment "retreat" for their funds, since there is a common perception that yields operate compensation compared to inflation, the depreciation of the dollar exchange rate, stock index returns and other investment assets especially in times of economic crisis and political unrest.
The relationship between macroeconomic variables, gold price and oil price fluctuations has been extensively analyzed in the literature, especially during the last three decades. Many researchers have concluded that there is either a negative or a positive correlation between the increases in oil and gold prices and the economy. Fluctuations in gold and oil prices, as it is proved by the analysis affect the aggregates that interest rates, inflation, the exchange rate and the growth rate of the Eurozone.
Crude oil Price
Prediction Euro v.s. US Dollar Exchange rate affected by crude oil and gold price