Relationship of gold and oil prices
The main idea behind the gold-oil relation is the one which suggests that prices of crude oil partly account for inflation. Increases in the price of oil result in increased prices of gasoline which is derived from oil. If gasoline is more expensive, than it’s more costly to transport goods and their prices go up. Gold prices have risen as investors look for safer assets, while U.S. oil production has made the commodity less sensitive to geopolitical tensions. The traditionally tight relationship between Crude oil prices can be used as a pretty good proxy of gold price movements since the two have a strong direct relationship. Over the long-term, gold prices tend to move up and down in tandem with