What is the difference between crude oil and gold?
Gold and crude oil prices have a positive correlation. The positive correlation between gold and crude oil prices is mainly caused by the following factors:(1) international gold and crude oil prices are denominated in the U.S. dollar, the U.S. dollar exchange rate fluctuations will lead directly to the gold price and oil price fluctuations.(2) high oil prices will increase inflation, inflation led to rising gold prices.
Gold and crude oil trading model is the same, are two-way operation, buy or buy up, speculation prices. Their trading units and prices are definitely different. What is not clear to me.
Changes in crude oil prices directly affect the operation of the oil exporting countries to gold, which led to fluctuations in the price of gold. Oil producing countries, such as Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, Iran and other places are mostly concentrated in the Gulf region, mostly Arabia countries, holding huge amounts of crude oil. When the international gold price fluctuations, they often have the same direction to the operation of the oil dollar.In order to transfer the risk of crude oil exporting countries often put oil dollars a huge part of the investment on the international financial market, and gold as a good tool to avoid risks, investment, natural in the crude oil selection in abroad.The price of crude oil rose period, held by the producers of crude oil dollar rapid expansion, so these countries will increase the proportion of gold in its international reserves correspondingly, increased demand for gold in the international gold market, thus promoting the rise in the price of gold.
