Gold , dollar and cruide oil relation

[Ganesh P.S]

Good Evening to Sir/Madam


This is very useful to me to know about this relation about Gold Crudeoil and Dollar.And also i Believe this is the best fundamentals and depth knowledge for everybody.Thank you for the Best Services to this site


Thanking you


with regards


Ganesh P.S

 

[vaneet]

hi every one i am new to commodities trade & i am intrested in investing in precious metals ir Gold & silver & i want to know that who are the good brockers for same & is that legitimake to invest in global market or to invest in nymex or to invest in landon exchange

 

[bulliondollar]

Hi Ganesh,

If Gold prices are directly related to Crude and Dollar value.

1. Basically, Gold is an inflation Hedge. If inflation of any country ( Mostly Look at developed economies) increases, investors buys gold to balance their port folio. So, Gold will move up.

Ex: Now every one says US economy is in Stagflation. You can see what Gold is trading at?

2. Crude prices directly affects the oil import bill of any country. Increase in Imports Bill will increase the Trade Defict ( Export - Imports) of countries (Mainly watch out US Trade Deficit Data). Higher Trade deficit would hit the value of currency of the country. This will affect the money circulation in the economy there by leading inflation ( Here applies the logic of " Too much money chasing too few goods). So, If Crude price rises, Gold will also move Up.

3. As you know most of the countries has got Foriegn Reserves. And these reserves are in form of Dollars. For example, India boasts about 140 Billion Dollars of reserves. If the dollar looses value, the entire basket looses value. So, countries will look for safe heaven i.e.GOLD. If Dollar looses value, Gold will mpove Up.

Happy Trading
Nanabala
9986039019
bangalore

Dear Sir ,
Why Gold ,Silver & Crude Going Up and Up This is not good for Traders I think Any Correction seen sir

 

[deepa_grwl]

Gold vs $ relationship is only a partial and dont tell you whole market picture by itself.And pls remember US $ is not predictor of gold direction always, and usually in real mkt condition gold leads $ in direction.

A fall in the dollar by itself does not signal a bull market in gold. A real gold bull market is when the yellow metal value grows in all currencies, not just the dollar.

Rather, what is more important for gold is the behavior of debt markets - the best proxy for financial markets risk.

And as far as crude is concerned its not correlated historically with gold market and its useless to find such correlation to trade pratically and only thing u might look is gold oil ratio to select some long term picks



PLEASE ENLIGTHNEn ON THIS...HOWS Is tht the debt amkts affect he behavior of gold

 

[dhanu007]

Thanks very much