The David Lin Report · Thursday, September 10, 2026
Gary Wagner points out a high correlation between the price movements of gold and West Texas Intermediate (WTI) crude oil. He explains this connection is due to crude oil's significant impact on inflation, which in turn drives gold prices, especially when the dollar is weakening.
“I'm going to overlay the WTI chart now with gold. And I want you to just observe this relationship, not a perfect correlation, um, and, of course, they haven't historically been known to move perfectly together. But you'll notice that if you zoom out to a year-to-date chart, which is what I have in front of my screen, Gary, you'll notice that broadly speaking over the course of this year, they've been moving up and down around the same time.”
“Well, they're absolutely moving in tandem. The correlation is really high. It's not dollar for dollar, percent for percent. But because crude oil is such a huge component of potential spikes in inflation, and because gold thrives, uh, during a period, uh, in which inflation is increasing, and the fact that we've seen the dollar go lower, it's really the perfect environment.”