The gold-oil ratio is quite interesting. Before 1985, it was relatively stable. In 1986, oil prices plummeted, and the gold-oil ratio began to rise. Around 1998, oil prices started to soar, while gold remained relatively unchanged, causing the gold-oil ratio to decline.
Then, starting in 2008, we entered a phase of continuous increase in the gold-oil ratio. As everyone knows, QE began in 2008.
Both gold and oil are related to the US dollar, but their effects differ. Gold tends to decline in value against the dollar, while oil often benefits from a strong US economy, and during recessions (like in 1985), prices usually fall.
Currently, it seems that these trends are still ongoing: the dollar is being viewed negatively, and there is an economic recession. Therefore, I estimate that the gold-oil ratio will maintain its upward trend.
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