The Gold to Oil Ratio Calculator helps you find out how many barrels of crude oil you can buy with the price of one troy ounce of gold. It is a simple yet powerful economic indicator that traders, analysts, and investors use to understand the relative value of gold compared to oil. This ratio can give insights into market trends, inflation expectations, and global economic conditions.
The calculator belongs to the commodity ratio calculators category. By comparing the price of these two essential commodities, you can make better decisions in investment, hedging, and market analysis.
formula
Gold to Oil Ratio = Price of One Troy Ounce of Gold / Price of One Barrel of Crude Oil
Variable Explanations
Price of One Troy Ounce of Gold: The current market spot price for one troy ounce of gold (XAU/USD).
Price of One Barrel of Crude Oil: The current market price for one barrel of a benchmark crude oil, such as West Texas Intermediate (WTI) or Brent.
Quick Reference Table for Gold to Oil Ratios
This table shows some common gold and oil prices along with the calculated ratio. It can help you quickly estimate without manually calculating every time.
| Gold Price (USD/oz) | Oil Price (USD/barrel) | Gold to Oil Ratio |
|---|---|---|
| 1800 | 60 | 30.00 |
| 1900 | 70 | 27.14 |
| 2000 | 80 | 25.00 |
| 2100 | 90 | 23.33 |
| 2200 | 100 | 22.00 |
Example
If the price of gold is 2000 USD per troy ounce and the price of crude oil is 80 USD per barrel:
Gold to Oil Ratio = 2000 / 80
Gold to Oil Ratio = 25
This means that with the price of one troy ounce of gold, you can buy 25 barrels of crude oil.
Most Common FAQs
There is no fixed “good” ratio because it depends on market conditions. Historically, the ratio has varied between 10 and 30. Higher ratios mean gold is relatively expensive compared to oil, while lower ratios mean oil is expensive compared to gold.
It helps investors identify market trends and potential investment opportunities. For example, if gold is rising faster than oil, it may indicate economic uncertainty or rising inflation.
If you are actively trading or investing in commodities, checking the ratio daily or weekly is useful. For long-term analysis, monthly reviews are often enough.