why gold prices are related with OIL!

Jan 2012
hi! hope all are fine, happy, healthful, and without any tensions and depressions :p

a few questions from respected myp:

1- how the price of Gold is determined?
2- and why the prices of Gold are related with OIL?

An Afghan!
Jan 2009
The price is determined through buying and selling in the derivatives markets and gold fixing provides a benchmark.

As for gold and oil there is no exact relationship and at times they don't go together based on what is happening at the time (shocks, commodity-specific news, etc.), but generally they correlate because they are both commodities and safe havens from currency or currency-backed stocks essentially.

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