New York

OIL is making gold investors cross- eyed. Because gold traders often track the cost of oil, which can impact consumer costs and inflation, a whipsaw in crude futures is spurring the biggest price swings for bullion in almost nine months. Adding to the pain for gold investors is a dollar rally that's curbing demand for alternative assets.

While gold dropped to a four-year low last month as investors saw less need for a store of value, prices surged on Dec 1 by the most in 14 months when oil rebounded from a five-year low. Both commodities resumed declines yesterday. US inflation expectations, measured by the five-year Treasury break-even rate, fell 24 per cent this year, set for the biggest decline since 2008.