Gold Founders as Prices Slump to Three-Month Low Against Oil
- Bullion losing steam as investors price in higher rates
- Rise in oil, dollar eroding gold’s appeal as alternative asset
What Happened to Gold Market Volatility?
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Crude oil’s biggest monthly rally in five months is taking the limelight off of gold.
An ounce of gold bought about 26.9 barrels of crude oil on Monday, the smallest ratio in three months. While gold gained just 0.4 percent last month, oil jumped 7.9 percent as optimism build that OPEC will finally be able to trim a global glut. The rise in oil, along with the dollar, is eroding the appeal of bullion as an alternative asset.