Gold prices: a nugget of good news.

• Author: Rassell, Zachary
• Position: ALASKA TRENDS - Brief article

Historically, the price of crude oil and the price of gold (among other commodity metals) have been strongly correlated. This is partly because both commodities are traded globally but priced in US dollars. When the dollar rises, dollar-denominated assets usually drop in price, as investors of other currencies find dollar-denominated assets more expensive. Commodities thus often see price movements in the same direction. However, this hasn't been the case with the recent crash in oil prices, which have held roughly steady for the last year.

Crude Drops--Gold Rises

Crude decreased by about $2 a barrel from about $48 in August 2015 to $46 for the same month in 2016. Gold on the other hand has increased by over $200 per ounce in the same time frame, from a little over $1,100 to more than $1,300 per ounce. For a state that produces the second highest amount of gold in the country, this is a nugget of good news, not to mention the fact that silver and zinc prices have also increased...