What is the reason behind falling gold and crude oil prices? Despite having been flooded with speculative money because of various stimulus packages, why these commodities are going down opposite to the set rules and beliefs?
There are several reasons for the same:
1 Crude and gold has inverse relation with equity market. US equity market has started to do well by posting highest growth in last quarter since 2008 slow down.
2 China growth rate has slow down and come to lowest, hence demand of crude has fallen down drastically.
3 US has discovered the substitutes of crude oil.
4 Rally in the price of gold comes to end after going up for last 5 years continually.