Want To Know Where Gold Prices Are Heading Next? Just Take A Look At Oil

If you want to know where Gold prices are heading next, then just take a look at the bullish trend in Oil prices. This week, Oil prices surged above $95 a barrel for the first time since September 2014 and are hitting new record highs almost weekly.

Surging Oil prices spilling over into the rest of the commodities complex and triggering higher and more persistent inflation is one of the worst-case scenarios for central banks all over the world.

But that is exactly what could spark the next big explosive bull run in Gold.

Higher Oil prices usually feed into inflation expectations and boost demand for assets with inflation-hedging capabilities, such as the Precious Metals.

Oil’s current inflationary rally provides bullish tailwinds for all Commodities, especially inflation hedges like Gold. A rush for safe-havens will inevitably be one of the primary drivers of Gold this year, as people worldwide start to feel the impact of inflation.

According to Goldman Sachs, “Inflation has even further to go, before it gets better and that presents an extremely bullish backdrop for commodity prices head”.

Oil prices could very easily be trading above $100 a barrel in the next couple of months and then surge towards $150. Once that happens, Gold prices won’t be too far behind.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.