Kitco News -- Lower oil could be a driver of higher gold said Mike McGlone of Bloomberg Intelligence in an interview with Kitco News on Tuesday. McGlone pointed out that the gold-to-crude ratio may be at risk of following a similar consolidation pattern as the 2015 plunge. "They just aren't producing as much gold as crude oil, which should bode well for the precious metal's price in relative terms," said McGlone. Gold prices scored a three-week high Tuesday with April Comex gold last up $11.70 an ounce at $1,245.60. Safe-haven demand amid a big sell-off in the U.S. stock market and a sharply lower U.S. dollar index was helping to boost the yellow metal.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.