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Why have oil and gold prices diverged?

Oil hit $123 a barrel today. Gold fell to $869 an ounce. Since the Bear Stearns crisis on the Ides of March, oil has risen by about 12 percent. Gold has fallen by about 12 percent. Somewhat strange. On March 15, as the financial system collapsed, shorting gold and going long oil would not have been my first investment move.

Posted by Jay Hancock on May 7, 2008 6:14 PM |
                    

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