Gold, Crude Oil, and Silver Trio - Revealing the Mystery
May 16, 2012, 6:37 PM by Przemysław Radomski CFA![gold, silver and crude oil](/media/cache/98/46/9846929beb1d25b2201794ac60bbc8e2.png)
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Crude oil is undoubtedly the commodity most closely related to precious metals. Historically, gold and silver investors extensively applied the relationship between gold/silver and crude oil to gauge market trends, especially while considering the long-term scenarios. Both markets rally on inflation fears, both rise in case of war threats given that at least one of the countries is a big player in the oil industry. Finally, both have been in a strong bull market for years.
This essay is an attempt to explore the primary connection between crude oil and precious metals. In other words, is it possible to derive a trading strategy based on this relationship?