Gold follows black gold?

TEXT OF STORY

LISA NAPOLI: Black gold and the real thing are both up in price this morning, but they've both been slipping for a few weeks now. And Marketplace's Bob Moon says that's probably not a coincidence.


BOB MOON: As the cost of oil climbed ever-higher late last year and early this year, prices for gold and other precious metals climbed to record heights as well. Gold, especially, is a traditional hedge against inflation for investors.

Now, with speculation that the end of summer and a slowing economy will ease demand for oil, some precious metal analysts say inflation could be less of a concern, and gold could lose some of its luster.

On the other hand, analyst Jim Wyckoff thinks low prices for gold could just attract buyers.

JIM WYCKOFF:"What many people are doing right now is taking too narrow, or myopic, of a view. The longer term picture is still bullish for crude oil, still bullish for gold, still bullish for commodities, and that's not -- one week's not going to change that."

Wyckoff concedes a significant price slide into the $60 or $50 a barrel range would bring gold prices down, but he says he'd be shocked if that happens any time soon.

In Los Angeles, I'm Bob Moon for Marketplace.

About the author

Bob Moon is Marketplace’s senior business correspondent, based in Los Angeles.

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