why and how the price of gold is linked to oil price?
108403
There is no formal relationship between the two, they do tend to move together though. \n\nThey are both commodities and all commodities tend to move together. Indexing and commoditiy funds might be partly responisble as well.
360270
The basic concept is here: http://www.npr.org/templates/story/story.php?storyId=5365439\n\nThe paragraph under "Then who sets the prices?"\n\nCrude oil spot prices are here: http://tonto.eia.doe.gov/oog/info/twip/twip_crude.html\n\nGas prices are here:\nhttp://tonto.eia.doe.gov/oog/info/twip/twip_gasoline.html\n\nGas prices are basically following the crude minus the Katrina killing of some refineries that needed to be repaired so that's probably the spike.\n\nThis is our daily usage:\nhttp://tonto.eia.doe.gov/oog/info/twip/twip_crude.html#inputs\n\nAbout 15 million barrels of crude oil per day now.  It also shows the Gulf Coast's major tank in production like I mentioned earlier around Nov '05.\n\nYou are correct that drilling in Alaska would probably not affect prices that much.  How much?  We don't know.\n\nThere's an article about it here: http://www.usatoday.com/news/washington/2005-11-03-senate-oil_x.htm\n\nUnfortunately, I don't have the DOE study handy.  Maybe you can find it for your purposes here. :)\n\nFor the actual price of crude oil, demand doesn't have to double in order for price to spike up double.  All it really takes is the minds of the traders on the futures market that something political or whatever is going on.  They are the main ones who set the prices that are used worldwide.\n\nOur net imports of oil have grown past 60% and are steadily rising every year: http://www.eia.doe.gov/emeu/mer/pdf/pages/sec1_15.pdf\n\nOne of the points touched on was worldwide demand, including India and China.  They are definitely demanding more and more each year: http://www.eia.doe.gov/emeu/ipsr/t24.xls\n\nIt's slow but it's increasing.  How much this affects prices is unknown.  Predicting the value of the stock market in 5 years is about as easy.  No one really knows.  You have to remember that market prices are always forward looking, so it's what people think is going to happen in the future.  That's what the current price today is based on.\n\nAnd last by not least, the DOE's view on the current prices: http://www.eia.doe.gov/bookshelf/brochures/gasolinepricesprimer/eia1_2005primerM.html\n\nAnyway, this is just a bunch of raw data.  I'm sure that there are about 85 ways to look at it.  Most people here take only one side of the story, but hey, that's life on the Internet.  Have fun. :)
774056
Market forces my behind. The price of crude is still dropping while the price of gas is creeping up again. Are people really trying to say the price of gas dropped seventy five cents after labor day because the summer driving season ended? Get real. The oil industry is globally manipulated and further down the chain manipulated by everyone who can manipulate it. Every oil company dumps their gas into a common pipeline and then pulls it out somewhere else along that pipeline. Exxon-Mobil, Citgo, Chevron...it's all the same gasoline. They each add some ingredients to try to distinguish themselves from one another with whatever they claim their gas does to enhance your engines performance. Think there's no manipulation? What happened to the oil shortage from thirty five years ago?
435302
It is more political.  Some of them are good companies with good earnings.  the mineral area the stock prices have shot up because of high demands from countries like India and China.  That translates in to more $$ for the companies.  The unrest in the middle east is also a reason.  When Iran starts flexing her muscles and Iraq is looking troubling the price of oil goes up in expectation of oil becoming riskier or scarce to get.  much more politics than what companies are really doing.
481293
There are a lot of events in the Middle East which cause oil prices hit the psychological level of 70 dollars .the main reason is \n"Geopolitics are riding the price" on the concern that Iran s nuclear row with U.S.  oil exports from the world s fouth-largest producer and as a major Nigerian supply outage dragged into a third month .stressing that there was no shortage of crude in the market . As there would not be any supply disruption from iran which pumps around 5 percent of the world oil.And who must take blame for that? its sure thats Bush!
345940
Greed mostly.  The actual physical factors that drive it are production supplies and output demand but these could be leveled off and maintained for the most part so fluctuations come from CEOs of exxon and similar gas refinery companies or Leaders in OPEC messing with prices just to jack up the price to make more profits
583455
gold prices are not bound to come down anywhere in the world..even in the US.\n\nso long dollar was the reserve currency of many countries..as dollar begins to depreciate against major currency[the reason we all know] governments are moving to more stable form of investment\n\ntime and over gold is proved to be a gold metal for investment.. \n\ncurrent sources point that japnese govts and many other asian govts are investing heavily in gold, causing the price to sky rocket\n\nyes they wil come down , when we start to find another stable currency
1170530
Oil prices in the future will increase, because:\n1)  Inflation.\n2) It is a limited resource; no new oil is being MADE.\n3)  We (humans) are consuming it faster than we are replacing it through new discoveries.\n4) Global consumption is increasing due to greater (total) energy demands.
449895
The simple economic principle of "Supply and Demand". This states that you charge more if it is a more wanted item. If there is a demand of it and a small supply then it is very valuable (like iPods and such) the people will charge you what ever they want because they know you need it. But if there is less demand and doesnt matter how much supply the producers will charge less as a means of selling their item (ie the sales been at store, nobody wants it so they sell it for cheap).\n\nRight now the war is slowing down how much oil can be exported which is making the supply drop. Not to mention that the oil compnies need to turn the crude oil into gasoline which cost money as well.
306594
The price of gold, like anything, is based on supply and demand.  In this case, many investors wanted a "safer" investment during the rocky times of the stock market, so they flocked to gold.  The government doesn't really affect the prices that much.
811382
There are 4 sources of gold.  mine production,  hords, reclamation from recycling and government stocks.\n\nmine production is pretty much constant until new mines come on stream.  There is a very long lead time to bring a mine up.  Hords tend to not increase supply at all because as the price increases, people tend to add to their hords.  Recycling is a pretty much constant supply.  That leaves government stocks.  Governments have been know to release their stocks as prices increase so that is the only short term possible addition to inceases to supply.  As for decreases, the same pretty much hold true except for hords.  After a large run up in prices, at a sharp drop in prices hord holdings tend to be released to the market further driving prices down.
591840
about $85-$90.  But it really depends on the political situation. if USA attacks iran then the oil prices will shoot up to $100-$120.\n\nThe best thing is to accumulate gold as the price of gold mimics the price of oil
631272
No special reason, just because when the price or oil raise,everone go to buy gas so the price of the gas will raise either.
506826
Well looking the economy situation it is tough to say but I would say in past there was price of $ 850 sometime in 1970s or sometime they took pretty close 20 yrs to bring down price to $ 275.\n\nAs per that now since market is not steady too it is big risk but this time is still good to buy gold since as per predictions the price will be around 1000-1200 soon so if you have extra money buy some keep aside.   also gold is anytime investment rather than buy anything else buy gold.
523807
value of us dollar is connected with transactions in oil business....as this business will become endangered the dollar is bound to go down.
575908
Because the natural resource of copper as well as all other\nmetals are rising too.\n\nThe natural resources like copper, gold, and silver are rising because its consumption is rising. The cause of the rising consumption and prices is because asian countries\nare building at a (China and India) phenomenal rate.\n\nBack to the rule of supply and demand. Growth countries are consuming more, faster than you can dig the metal out of the ground.
729600
It is worth 2% over the spot price of gold, regardless of the date. The current gold spot price as of the market close on 3 November 2006 is US$626.90.