Is There A Relationship Between Gold And Oil Prices?

Gold is very interesting in a lot of ways: It does not have wide industrial use and yet its relevance has not gone down, historically speaking. It lost its “convertible” relationship with the U.S. dollar in 1971, but people still buy gold when they feel the economy is in bad shape. Oil, on the other hand, has widespread use and is a leading indicator for inflation–this means that if oil prices go up it usually results in a higher inflation because the cost of goods rise as well.