The gold-oil relationship has changed, for now | Metals Mine

  • The gold-oil relationship has changed, for now

    From openmarkets.cmegroup.com

    The traditionally tight relationship between gold and oil prices is disconnecting once more as the gold price soars, while crude oil remains under pressure. The nearby COMEX gold futures price broke through the $1,400 per troy ounce mark in June, the highest gold price seen since August 2013. Meanwhile, prices for global crude oil benchmark WTI futures have been relatively weak, hovering around the $50-60 per barrel mark for some time. This divergence is quite unusual. Crude oil and gold prices largely move in tandem, although with occasional disconnects. High oil prices increase the costs of making and transporting ... (full story)

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bigtx
Aug 6, 2019 8:25pm
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This might just be the new normal. We've seen historical levels in the gold/silver ratio too, so maybe this is a new normal. Gold/silver on the other hand - I think that will continue reversion to the mean given it's long history
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