When oil price increases, gold price also increases, Why so?, What is the logic behind it?

Gold gos up when people lose faith in the dollar. There was a big increase in the early 70's when we abandoned the gold standard, one around 1980 when we were experiencing double digit inflation and the current one as people were anticipating the fall of the dollar due to our growing trade deficits. The US economy and the dollar tends to have trouble when the price of oil increases but the abandonment of the gold standard in 1971 was not oil related. The inflation in the late 70,s was mostly due to an oil price spike, and the recent fall of the dollar was both the cause and effect of the increase of the price of oil.When oil price increases, gold price also increases, Why so?, What is the logic behind it?
there is an inverse relation ship between oil%26amp; gold price on one side and $ value on the other


after housing problem, US governement lowered $ interest rate about 3 times, to solve the problem of recession, so that step lowered the value of $ in front of other currencies like euro


that's made people holding $ prefer to invest their money in oil and gold as they are afraid of the decreasing value of $, so demand on oil contracts and gold increased and their prices as wellWhen oil price increases, gold price also increases, Why so?, What is the logic behind it?
well if u think about it when oil goes up u need oil to run machinery right? so then itll cost more to drill out the gold. you dont get much gold from every ounce of ore so it takes alot of ore to drill out. and to get more ore u need to use more equipment which takes up more oil
Crude oil must be purchased via U.S. Dollars, regardless of the country you are buying from. So when oil prices rise, more dollars must be put in circulation to pay for it. More dollars in circulation( just like more widgets for sale at the flea market)decrease the price (worth) of the dollar (supply and demand.) When Dollars hold less worth, their representative equal, Gold, must hold more.
Historically, precious metals have been the fall-back place to put your investments when other markets are experiencing instability. Gold has had value since before there was currency; it will probably always have value. High crude oil prices are indicitive of global political uncertainty and instability; plus, it is a precursor of recession and just bad for importing economies.





So basically, rising oil prices creates economic instability. Economic instability improves the attractiveness of precious metals investment. When investments go up, demand goes up. When demand goes up, prices go up.





All I have to offer is the truth. I hope this helps.
There are way too many dollars in the world economy. Everything is going up, oil, gold, copper, coal, natural gas, wheat, corn, soy, milk, beef. Oil production in particular has been flat for the last 3 years and it is lower now than in 2005. Many oil fields are in terminal decline and the industry is struggling to replace them fast enough. The worst case of all is mexico, were oil might run out entirey in 9 years.