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How have suppressed oil prices affected the gold market?

*Bloomberg, by Pham-Duy Nguyen, October 4, 2006

“Gold, little changed in New York, may rise as rebounding oil prices boost the appeal of the metal as a hedge against inflation.

The price of gold has dropped 21 percent from a 26-year high of $732 an ounce on May 12, partly because crude oil has declined 24 percent from a record in July. Oil yesterday fell below $60 a barrel to a seven-month low, triggering the biggest decline in gold in three months.

“Gold is definitely following oil around,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “Right now, that’s the main driver.” “

*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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