anant1a
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Gold or Oil: Which is the cheapest commodity?
MUMBAI: Gold prices have been going up through the roof all these days. And oil prices are also rising and rising, day by day. But among these two hot commodities, which one is cheap--Gold or Oil?
Globally, many analysts have pointed out that gold is vastly undervalued as compared to oil.
Oil prices topped $104 a barrel Wednesday for the first time ever today. U.S. light crude for April delivery reached $104.56, beating the previous all-time intraday high of $103.95 set Monday. It eased to $103.73, still up $4.21 on the session.
Gold futures closed with strong gains, after hitting $995.20 an ounce Wednesday, boosted by the rally in crude oil. Gold for April delivery rallied $22.20 to end at $988.50 an ounce on the New York Mercantile Exchange. Earlier it surged to a record high of $995.20 an ounce.
For those that follow the gold to oil ratio, today's figures show that oil gold ounce will buy 9.6 barrels of oil.
The 36-year average is closer to 15 bbl/oz, but in the last few years the average has been in the 9-10 bbl/oz range.
MUMBAI: Gold prices have been going up through the roof all these days. And oil prices are also rising and rising, day by day. But among these two hot commodities, which one is cheap--Gold or Oil?
Globally, many analysts have pointed out that gold is vastly undervalued as compared to oil.
Oil prices topped $104 a barrel Wednesday for the first time ever today. U.S. light crude for April delivery reached $104.56, beating the previous all-time intraday high of $103.95 set Monday. It eased to $103.73, still up $4.21 on the session.
Gold futures closed with strong gains, after hitting $995.20 an ounce Wednesday, boosted by the rally in crude oil. Gold for April delivery rallied $22.20 to end at $988.50 an ounce on the New York Mercantile Exchange. Earlier it surged to a record high of $995.20 an ounce.
For those that follow the gold to oil ratio, today's figures show that oil gold ounce will buy 9.6 barrels of oil.
The 36-year average is closer to 15 bbl/oz, but in the last few years the average has been in the 9-10 bbl/oz range.