They should be paired since you can make gold with oil. All you have to do is burn a bunch of oil to dig up more gold. If oil is expensive you'd shut off the mine. If oil is cheap you'd turn on the mine.
However, the gold price is set by the paper gold market not actual gold.
And that misterious 1970.
Classic pennant in gold signaling massive logarithmic upswing in next 5 years? $10K gold?
Obviously we all know that the gold dollar through 8/15/71 and the fiat dollar after that date behave demonstrably differently.
Yeah definitely seems like a paired trade. My guess: cbs use gold as collateral to influence oil prices
They should be paired since you can make gold with oil. All you have to do is burn a bunch of oil to dig up more gold. If oil is expensive you'd shut off the mine. If oil is cheap you'd turn on the mine.
However, the gold price is set by the paper gold market not actual gold.
I agree though my impression was that they may be using them more as anti correlated trades ie hedges