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.
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