# Strange divergence in gold and oil could spell more gains for stocks

> The US dollar has strengthened, with the DXY up about 1.5% year to date and gold down about 1.4%. Crude oil has rallied to multi-year highs, rising about 20% year to date despite the stronger dollar.

- Date: 2018-05-22 · published 2018-05-22T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/64946-strange-divergence-in-gold-and-oil-could-spell-more-gains-for-stocks
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Firmer crude oil supports biofuel feedstock values and diesel costs, which can lift vegetable oil and freight costs for feed makers, while the stronger dollar weighs on dollar-priced commodities.

## Read by commodity

- DXY: bullish ▲
- WTI: bullish ▲
- BRENT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2017-07-27 | [FOMC Deflates Dollar Inflates Oil And Gold - ActionForex](https://feedsoft.ai/events/69896-fomc-deflates-dollar-inflates-oil-and-gold-actionforex.md) | +2.0% | -0.4% |
| WTI | 2020-07-29 | [Canadian dollar gains as investors sell greenbacks on ‘downbeat’ Fed - The Globe and Mail](https://feedsoft.ai/events/52351-canadian-dollar-gains-as-investors-sell-greenbacks-on-downbeat-fed-the-globe.md) | +1.8% | +5.6% |
| WTI | 2017-06-30 | [Canadian Dollar Exchange Rates Boosted As GDP Comes In On Forecast And Oil Boosts The CAD](https://feedsoft.ai/events/70739-canadian-dollar-exchange-rates-boosted-as-gdp-comes-in-on-forecast-and-oil.md) | -1.5% | +10.7% |
| WTI | 2019-06-04 | [Oil bounces off four-month low, turns positive as stocks rally](https://feedsoft.ai/events/11311-oil-bounces-off-four-month-low-turns-positive-as-stocks-rally.md) | +0.1% | +10.7% |
| WTI | 2021-10-27 | [U.S. demand for oil surges, depleting tanks in Oklahoma](https://feedsoft.ai/events/44715-u-s-demand-for-oil-surges-depleting-tanks-in-oklahoma.md) | -1.6% | -8.1% |
| BRENT | 2017-07-27 | [FOMC Deflates Dollar Inflates Oil And Gold - ActionForex](https://feedsoft.ai/events/69896-fomc-deflates-dollar-inflates-oil-and-gold-actionforex.md) | +3.4% | +3.8% |
| BRENT | 2022-03-22 | [Steep oil and sunken yields flash more weakness for Japan's yen](https://feedsoft.ai/events/42481-steep-oil-and-sunken-yields-flash-more-weakness-for-japan-s-yen.md) | -4.6% | -10.5% |
| BRENT | 2017-06-30 | [Canadian Dollar Exchange Rates Boosted As GDP Comes In On Forecast And Oil Boosts The CAD](https://feedsoft.ai/events/70739-canadian-dollar-exchange-rates-boosted-as-gdp-comes-in-on-forecast-and-oil.md) | +2.3% | +8.2% |

## Sources

- cnbc.com: https://www.cnbc.com/2018/05/22/strange-divergence-in-gold-and-oil-could-spell-more-gains-for-stocks.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.