Gold and Oil - Negative Correlation

The daily gyrations of one asset class may have an effect on the performance of another global asset. In this case the rising price of Brent Crude Oil has put downside pressure on the price of gold, creating a negative correlation between the two assets. The global price increase of brent oil, is a result of supply constraints from the Straight of Hormuz region. The decreased availability has driven the price of Brent Crude higher. 

Below is a chart depicting the two assets (oil and gold) represented by the exchange traded security BNO Exchange -Traded Security and exchange-traded fund GLD. Simply put, as the price of Brent Oil (representative of BNO) moves higher, the price of gold lower, creating a negative correlation at this time of post at -0.93. Thank you for reading.