Gold, oil Bijiaxiaoying

Pan Sheng in a row in commodity prices, commodity-related boost the ratio of funds into or suppress prices. By analyzing the gold, silver and oil price changes in the relationship, we can see that gold and commodities related to the ratio of funds into changing the way the root causes. The relationship between prices pushed up the price of gold In the international market, gold and oil have similar strategic significance between the two prices is an important indicator of investment decision-making. At the same time, oil and gold as a hedge to inflation-related products and the existence of gold as a currency at one time the only form of oil in the 1970s for its strategic value is no alternative to winning the "black gold" reputation. In addition, fluctuations in oil and gold with the political, economic and financial interaction with clear: the international political, geopolitical, strategic country, the country's security and economic interests will affect the oil and gold price volatility; gold and oil and international economic trends The situation closely related to the recent oil price increases has States on the formation of the impact of economic growth can be reflected; investors expected flows of capital and gold and oil also have an impact on the trend. Please refer to reflect the gold since 1970 with the oil price relationship map is a horizontal line in the past 35 years, the average gold price of oil. From the past 35 years, gold and oil to maintain the general level of the ratio of relative stability in the 1 ounce of gold in exchange for the ratio of 15.7 barrels of oil. Since 1999, as oil prices continue to rise in a row and set the historical record, gold appears to be outshone by the increase. According to the rate of comparable basis, from early 1999 to mid-2005, crude oil reached 358 percent increase over the same period of gold rose only 52%, indicating that gold and oil prices have been seriously distorted, but also for the Fund for the purchase of crude oil to sell gold to provide A good opportunity. In fact, this hedge fund arbitrage trading model is the main way. 2005 mid-term, arbitrage funds begin to sell oil to buy gold operation, during which gold and oil below the 8:1 ratio for the fund positions to create a good opportunity. To enter in August 2005, the Fund's net gold in the multi-warehouse has been reaching record highs, while the fund's position in oil also turned into net short position. August 29, "Katrina" hurricane has become a turning point in gold and oil prices. Since then, increasing funds to buy gold and sell oil, and oil is made from 70.80 U.S. dollars / barrel fell to 55.40 U.S. dollars a minimum / barrel, while gold prices broke through the 510 U.S. dollars / ounce of 25-year high. At present, to April 24, 2006 NYMEX crude oil 73.33 U.S. dollars / barrel and gold spot 619.3 U.S. dollars / ounce basis, gold and oil prices at the 8.45 level, this ratio remains well below the 35-year average of 15.7. If the current oil price multiplied by the 35-year average, the price of gold for 1151 U.S. dollars / oz. It can be said that even in the next few months, oil prices must come down, gold still has considerable room for prices. Dollar investment to suppress the warm relations With gold and precious metals for the silver, gold and the trend has more similarity, the price of gold and silver are often the relationship between investors as a reference to the decision-making. Fund in the near future is the use of gold and silver prices caused by the difference in a suppress the completion of the gold investor enthusiasm for the final blow. February 2, 2006, the price of gold peaked 575 U.S. dollars / ounce after adjustment of prices. Gold adjustment not only with the purpose of the new Federal Reserve Chairman Ben Bernanke came to power by forming a policy vacuum, the most important is the opportunity to fund cleansing to follow the trend of rise in the firm not long in order to reduce the resistance to try for gold again. However, due to lower gold prices relatively limited space, which resulted in the Fund Xipan difficult. March 10, with capital funds to double the false impression of a breakthrough top-down, completed a three-wave adjustment. Then, turn to good fundamentals in the circumstances, the Fund began to re-boost the gold price. March 22, about to Baiyin ETFs have been approved to stimulate the news of silver hit a new high of 22 years and started a fast rising market. At this point, not only failed to follow gold and silver prices, the opposite trend appears down. At the same time, the market also use words "gold standard" during the formation of 1 ounce of gold exchange ratio of 16 ounces of silver to promote relations between the silver easier to invest in the fund out in a timely manner and to "throw gold to buy silver". This has shaken the confidence of some of the gold bull. Two days after a shock decline in the market before the completion of a try for the last cleaning, the Fund launched a rapid attack at this time market, gold in a short span of five on the Japan-China trade hit a new high.