Gold Equals 15 Barrels of Oil in Bearish Sign for Bullion
This article is for subscribers only.
Add the bear market for oil prices to the list of reasons that U.S. inflation is still tame and why some investors see bigger losses in gold.
The U.S. crude benchmark fell to two-year low this week, signaling lower costs for American companies and making it less likely investors will look for inflation hedges, such as gold. Oil’s slump pushed the ratio between the two assets to near a 17-month high, a sign that bullion is relatively expensive, said John Stephenson, chief executive officer at Stephenson & Co. Capital Management in Toronto.