Black Gold's Yellow Link: Oil Hints Metal May Rise
Sizzling crude-oil prices have outpaced even gold's heady rise this year, throwing the historical interrelationship between the two commodities out of kilter but not completely off track.
Crude oil and gold still share several key parallels that make the oil-gold ratio a useful barometer, analysts say.
For the six decades until this one, one ounce of gold bought roughly 12 barrels of crude oil. Yet the gold-oil ratio is now about 8.5 to 1. On this basis, gold looks cheap; it is as unlikely to double in ...