If you’ve been watching the market in recent weeks, one common theme is the connection between crude oil and gold prices. For instance, crude oil stocks (aka “black gold”) plummeted recently to 5-year lows and now rest more than 40% below their summer peaks.
Meanwhile, actual gold experienced a small reversal from 6-week highs as falling oil prices spurred on deflationary concerns. However, spot platinum and palladium advanced higher.
Reuters reported on the story, saying:
Oil prices tumbled as much as 5 percent, pushing U.S. crude to five-year lows near $60 a barrel after data showed a spike in U.S. inventories and Saudi Arabia’s oil minister reiterated that he has no plans to cut output.
“The weak oil prices sapped some of the strength out of the gold market,” said James Steel, chief metals analyst for HSBC Securities in New York.
Related news:
http://www.arabnews.com/economy/news/669796
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