If you’re wondering what the inter-market relationship is between gold and oil, hold the thought. It’s a good question. And the brief answer is that oil and gold both tell you things about what’s going on in the economy (oil goes up with rising GDP, gold up when the USD is weak). The long answer would take longer than either of us has today. So what is the chart telling us now?
December 5th, 2008 | Dan Denning | 7 comments | ContinuedAll Posts Tagged With: "oil futures"
Where Will Future Oil Production Come From and How Can Investors Profit Today?
If you can say with assurance why oil prices are US$127, you are more assured than most. OPEC believes oil strength is really just U.S. dollar weakness. A stronger dollar means lower oil prices, and probably lower commodity prices in general. There are other theories that seek to explain the high oil price, including a “fear premium,” oil as an inflation hedge, and pure speculation by professional traders.
May 22nd, 2008 | Dan Denning | 0 comments | Continued