Prices of metals affected by war

Outbreak of war in the Persian Gulf near the start of the year, pitting a global alliance of nations under the auspices of the United Nations against Iraq, made an already volatile market even more skittish. Oil and gold prices in particular have been on a roller coaster ride since Iraq invaded major oil producer Kuwait last August, precipitating the fighting.

Metal prices in general, reflecting recessionary pressures, were on the decline in 1990 as the economies of the Western world slowed.

What effect now the Gulf war will have on metals prices, in both the short-term and long- term, remains to be seen. It could be months and possibly years before the full repercussions of the war are fully appreciated.006