The Developing Oil and Gold Price Divergence
You’ve surely noticed he recent huge drop in the price of crude oil (currently at around $62.50 per barrel, down more than 21% from its July peak of $78.40 per barrel.) Simultaneously, we have seen smaller, yet significant drops in the prices of gold and silver. (See the 30 Day gold and silver charts at Kitco.) Gold has dropped about 11%. The declines in the prices of the precious metals can be attributed to gut level trades made by the big institutional investors. Decades of experience has taught them that when oil moves significantly, then gold and silver will move …