Gold Vs Crude - Final Round

Rising gold prices are nothing but an indication of devaluation of currencies. In response to Fed's decision to keep printing more paper in order to combat western recession and a lingering uncertainty over the world economy, gold has been getting mass attention these days.

On the other hand crude oil is not so lucky. Despite an annual growth in oil demand, oil prices have swayed in a narrow band after crashing in 2008. In order to keep the global engine running and inflation under control, the oil prices are artificially suppressed at the moment. Also, the weak oil prices keep oil protected from the threat of alternate renewable energy resources.

 

However, in anycase the yawn between oil and gold is becoming too much for the jaw's comfort. This rigging will not last too long. Oil prices will soon be catching up with gold in case the gold stays on course or else, the gold must fall. But either option to ease the yawn will not help future health of economy.