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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: stunedbeeber
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1 posted on 09/26/2024 2:29:10 AM PDT by jimjohn
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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.)
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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
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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.)
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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
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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.


6 posted on 09/26/2024 2:44:29 AM PDT by Alberta's Child
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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.

7 posted on 09/26/2024 2:57:55 AM PDT by Right_Wing_Madman
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To: jimjohn

It is simple, really. Biden and/or whoever is managing the admin is dumping product from our strategic petroleum reserve (what we keep so we will have a supply for war) into the market to suppress prices. Basic laws of supply and demand. Dump a bunch of supply on any market, and the value goes down....., at least temporarily


8 posted on 09/26/2024 3:38:17 AM PDT by tanstaafl.72555
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To: jimjohn
Weaker dollar, burgeoning deficits, and a worldwide economic slowdown plus means less demand for oil and greater demand for alternatives to fiat currency.

Add in the rising level of geopolitical uncertainty with a lack of political leadership in the West and you have the current conditions.

9 posted on 09/26/2024 3:54:03 AM PDT by mac_truck (aide toi et dieu t'aidera)
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To: jimjohn

I suspect the un-pegging of the dollar (at least partly) from the price index about 6 months ago is part of the reason. Also the relatively even upcoming election, with SUCH different two candidates.

There are likely lots of people betting on the results of this election.


10 posted on 09/26/2024 4:02:53 AM PDT by cba123 (Trump 2024 !!!)
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To: Alberta's Child

https://www.iea.org/reports/oil-market-report-september-2024

World production at record, but demand going flat with demand growth slowing. Inventories have been dropping during the summer when typically increase.


11 posted on 09/26/2024 4:22:35 AM PDT by stateofit
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To: jimjohn

Oil and diamond supplies are governed by cartels to influence price.

Gold production influenced by price increases or declines, but most gold is not consumed. It sits around for the world to speculate over when everyone freaks out.


12 posted on 09/26/2024 4:36:12 AM PDT by stateofit
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To: jimjohn

Shhhh….the Biden administration has quietly relaxed the restrictions on drilling for oil and natural gas. They have been quiet about it so they don’t make their Dim Warmageddon cult followers mad. But they want lower energy prices in an election year.


13 posted on 09/26/2024 4:37:30 AM PDT by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: jimjohn

Gold is money. Everything else is credit.


14 posted on 09/26/2024 4:41:57 AM PDT by wny
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To: Openurmind

I have wondered for some time about oil prices. Where I live, gas varies in price all the time, is generally low compared to many places, but motor oil just seems to go up continually. Why is this?


15 posted on 09/26/2024 4:54:22 AM PDT by oldtech
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To: jimjohn

The supply of gold is largely inflexible.

Gold is also easier to store and transport and requires less expertise and infrastructure to store, so demand is much wider (compared to crude oil).


16 posted on 09/26/2024 5:27:41 AM PDT by TheThirdRuffian (Orange is the new brown in)
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To: stateofit

Oil is not governed by a cartel.

OPEC is long dead as a factor.


17 posted on 09/26/2024 5:28:24 AM PDT by TheThirdRuffian (Orange is the new brown in)
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To: stateofit

Gold is fairly well controlled. I mean, the price is set in London in what has traditionally been called the “Morning Gold Price Fix.”

And if you want to see “cartel like action”, look at silver.


18 posted on 09/26/2024 5:39:08 AM PDT by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
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To: jimjohn

Gasoline usage declines at the end of summer travel season (lower demand) and the administration has been releasing oil from the strategic petroleum reserve (higher supply).


19 posted on 09/26/2024 5:58:42 AM PDT by gunnut
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To: jimjohn
Gold isn't really going up as much as the dollar is going down.
That's why banks, nations and individuals are hoarding gold.

20 posted on 09/26/2024 7:03:28 AM PDT by BitWielder1 (I'd rather have Unequal Wealth than Equal Poverty.)
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