I agree with everything except the $0.75 increase in order for oil to stabilize with its average price. That is an assumption based on oil and gold increasing in value at the same rate, but the demand for those two commodities is driven by different factors. Gold increases in price whenever there is relative economic uncertainty, like now. That is not necessarily the case with oil.
What is true, though, is the USD isn't worth a whole heck of a lot, so both oil and gold are going to keep costing more USD until that problem is addressed.
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