Gold trading around $630 an ounce, being one of the most desired metals has lost its glitter when it comes to the international markets. It has seen a decline after speculations were made that the precious metal is after all not that much in demand with regards to it being used as a hedge against inflation since the Dollar’s possible rise against the Yen and the Euro showing the Forex market is still having a great impact on the metals.
However, on the other side oil trading around $61 a barrel has declined because of huge US stockpiles and the mild winter weather in the region has reduced the demand for oil and also that the dollar slide has made oil not so desirable since oil is traded in dollar and decline in the currency has created problems for oil exporters which are bearing losses due to this.
I feel that this is the right time for investors to buy oil and gold shares since the dollar value is low and once the dollar rises, gold and oil also will become the best products to sell and reap profits.
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