7 May | Gold | Oil

Bloomberg analyst says price gap between oil and gold signals possible recession

Bloomberg analyst says price gap between oil and gold signals possible recession

Mike McGlone, senior commodity strategist at Bloomberg Intelligence, noted the growing divergence between oil and gold prices. In his opinion, this trend signals further deterioration of economic conditions and a probability of a global recession.

Since the beginning of 2025, the cost of oil has fallen by nearly 21%, while the price of gold has risen by 26%. Consequently, the gap between the two has widened to nearly 50%. Last month, the price of the precious metal reached another historic high of $3,500 per ounce. These dynamics allow McGlone to suggest that gold is entering a growth trajectory which is similar to that of the crisis years of 2007 and 1935. According to the strategist, this trend is an unfavorable signal for the global economy.

He sees oil's low-price cure near $40 per barrel and gold's next resistance at about $4,000 per ounce. McGlone believes that the decline in the US stock market may be a major factor in achieving these goals. Consequently, the price of the main precious metal could reach parity with the S&P 500 index.

Period: 02.06.2025 Expectation: 450 pips
AUDCAD seen retreating to 0.88400
Today at 11:36 AM 20
Period: 06.06.2025 Expectation: 1400 pips
GBPUSD strengthens amid trade negotiations and weak US data
Today at 11:00 AM 25
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 13.06.2025 Expectation: 350 pips
Lack of unexpectedness during OPEC+ meeting can support Brent crude
Today at 09:36 AM 31
Period: 06.06.2025 Expectation: 1500 pips
Selling SPX on rising US consumer inflation
Today at 09:20 AM 18
Period: 13.06.2025 Expectation: 30000 pips
Buying ETHUSD with $3000 target with resistance breakout underway
Yesterday at 11:20 AM 60
Period: 30.05.2025 Expectation: 100 pips
Natural gas depreciates due to temporary halt of Freeport LNG facility in Texas
Yesterday at 11:01 AM 41
Go to forecasts