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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.” “

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Monex Bullion Investor