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27 Aug 2015
WTI and Gold: Going different ways
FXStreet (Córdoba) - FXStreet (Córdoba) - Crude oil is rallying sharply on Thursday and it managed to climb back above $40 and is testing the $41 area. Since the beginning of the day it has risen more than 5%, moving off multi-year lows. On Monday bottomed at $37.60 but since then it has been moving with an upside bias.
While crude jumps, the value of the ounce of gold remains mostly unchanged today, showing a repeated trend of the last weeks: the un-correlation between gold and crude oil prices.
Their dynamic is different but they use to follow at least the USD dollar. When greenback weakened, both used to gain and when it soared, gold and crude tended to move lower. Today the dollar index is up 0.6%, gold lower and crude sharply higher.
While on Monday, gold reached the highest level in a month at $1169, the barrel was trading at 6 and half year lows. Since then gold dropped more than 4% while crude has risen 8.15%.
While crude jumps, the value of the ounce of gold remains mostly unchanged today, showing a repeated trend of the last weeks: the un-correlation between gold and crude oil prices.
Their dynamic is different but they use to follow at least the USD dollar. When greenback weakened, both used to gain and when it soared, gold and crude tended to move lower. Today the dollar index is up 0.6%, gold lower and crude sharply higher.
While on Monday, gold reached the highest level in a month at $1169, the barrel was trading at 6 and half year lows. Since then gold dropped more than 4% while crude has risen 8.15%.