By Free Republic | Created at 2024-09-26 10:11:53 | Updated at 2024-10-01 04:20:58
4 days ago
Oil Prices vs Gold Price
Self | jimjohn
Posted on 09/26/2024 2:29:10 AM PDT by jimjohn
Can someone explain to me that why the price of gold keeps going up while the price of gas at my local pump keeps going down?
Yes, I am aware that things are going on behind the scenes. In fact, I am convinced that war is currently breaking out all over this planet- it's just not on the news yet.
But still it doesn't make sense that if the gold price is going up meaning the value of a dollar is going down. Why are the prices for oil also going down?
Perhaps there is a financial expert or experts among Us who could give us a fair explanation.
Your comments and feedback are welcome.
TOPICS: Business/Economy; Government; Politics
KEYWORDS:
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1 posted on 09/26/2024 2:29:10 AM PDT by jimjohn
To: jimjohn
Nations are buying gold for their central banks. People are scooping up gold as a hedge against financial concerns. As interest rates drop and economies all over the world start to flow, governments will “stimulate” the economies. This debases the currency and gold becomes more “valuable.”
Retail customers are starting to buy precious metals at a larger rate. This is usually the beginning of the end of the gold bull—retail buyers are usually the “last to the party.”
Oil is being pumped at record levels. The supply is good. When the supply is going up, the price will come down.
While both are commodities, they are not linked to each other.
2 posted on 09/26/2024 2:36:19 AM PDT by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
To: jimjohn
Two separate influences. Gold is going up because of the state of the failing economy and devaluation of the dollar that buys that gold. And oil would also be going up except they are being squeezed and threatened by Newsom, Biden, and Harris for price gouging. Big oil is being cautious and treading lightly with prices in case Harris wins. They are trying to draw the heat off themselves and hope to fly under the radar.
3 posted on 09/26/2024 2:38:53 AM PDT by Openurmind
To: jimjohn
Because Biden is draining our reserves to force prices down during the election.
4 posted on 09/26/2024 2:39:34 AM PDT by stockpirate (A group of baboons is referred to as a "Congress" of baboons.)
To: Vermont Lt
“Oil is being pumped at record levels. The supply is good. When the supply is going up, the price will come down.”
Yes, current supply is a huge factor.
5 posted on 09/26/2024 2:43:39 AM PDT by Openurmind
To: jimjohn
I can’t speak for gold, but I do know that oil production is at record highs while demand is flat or even dropping.
To: jimjohn
Can someone explain to me that why the price of gold keeps going up while the price of gas at my local pump keeps going down?
They're two different commoditities. Supply and demand is different for both assets.
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