How does the price of oil affect the price of gold?

It's a well-known fact that oil prices have tremendous influence on the rest of the economy. During periods when oil prices soar, inflation inflates the prices of almost every item in the economy. This is simply because gas prices rise when the price of oil increases. read more

Price of gold compared to price of crude oil (light) over one year. Here it is for a longer duration. This graphs may be a bit deceiving because they may cause you to believe that the correlation between the two is a causation. read more

In the modern world, oil prices are a good indicator of coming economic problems, and it is why we must monitor the price of oil to give us a view into future gold prices. Typically, oil prices tend to plummet before a recession hits. A prolonged period of lower oil prices often signals a severe recession or even a depression. read more