Gold and Oil have always had a strong correlation.
A) If Gold price is weak when Oil price is strong, what does that suggest of Gold when Oil drops?
Gold should go down is the most logical answer... but the market always has a way of surprising us and that's why many contrarians are successful investors.
Maybe Gold has struggled as an inflation hedge because Oil has been so heavily backed. Maybe now that Oil is looking weaker people will go back to gold?
