Outlook favours oil over gold

gold vs oil

While many fund managers agree the recent rise in the price of oil is likely to prove sustainable, there is no such consensus on the future for gold

Gold and oil exposure has helped drive the performance of numerous portfolios in recent months as strong global demand for commodities against a backdrop of geopolitical uncertainty led to surging prices. But, moving forward, should investors be investing their money in black gold or the shiny variety? Both are historically highly volatile and driven by far more than just straightforward supply and demand dynamics. Gold is negatively correlated to the US dollar and equities, so is heavily influenced by the two. Both are all too often found in less politically stable parts of the world, ...