Why does the price of gold rise with the price of oil?

I noticed on the 30yr price history of gold that the 2 major spikes were during the Oil Embargo of the late 70’s and currently.

4 Responses to “Why does the price of gold rise with the price of oil?”

  1. Alex Says:

    One of the explanations is inflation. High oil price causes inflation and gold is regarded as an inflation hedge. However, you can’t take this relationship for granted.

  2. kai l Says:

    don’t know, but the price of rice is going up too, that can’t be good…

  3. Mr. Tights Says:

    that’s because oil is black gold.

  4. xoxo Alex Says:

    CONSPIRAAAACYYYY? =o