The relation between crude oil vs gold and euro is the question I am looking for some time. From my initial studies, following graphs give an idea.
In this graph, log of crude oil is vertical axis and log of crude oil is the horizontal axis
Then check this one:
My conclusions:
1 - Crude and square of euro/dollar parity is in harmony
2 - Recession started hitting by the end of september 2008
3 - Crude and gold relation is broken for sometime
4 - Observe the euro's appreciation against dollar and rise in crude prices
All this means is crude prices will rise, since dollar will lose some of its value. By the end of May 2009, there is a great possibility that we may see 65-70 $ if dollar continues its slow depreciation. May is the start of driving season.
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