The gold-oil ratio approaches historical highs, institutions believe that strong gold prices and weak oil prices may be difficult to reverse in the long term

Recently, the international gold and oil markets have shown a distinct divergence. Gold prices have surged, with the New York Mercantile Exchange gold futures price once soaring above $4,300 per ounce, setting new historical highs; meanwhile, oil prices have remained under pressure, with U.S. WTI crude oil futures dropping below $56 per barrel, marking a new low since early May this year, leading to a significant rise in the gold-oil ratio.

Industry insiders indicate that the recent increase in gold prices is mainly attributed to heightened expectations of interest rate cuts by the Federal Reserve, a rise in market risk aversion, and a weakening of the U.S. dollar's credit; the decline in oil prices is primarily influenced by the industrial fundamentals, with the contradictions of oversupply and weakening demand becoming more pronounced. In the short term, due to the rapid increase in gold prices recently, there may be profit-taking pressure, which could drag down the gold-oil ratio. However, from a long-term trend perspective, a fundamental reversal of the strong gold and weak oil price situation may be difficult to occur