The twin blow of European and US debt crisis has triggered the gold market to a new high of $1,600 an ounce on Monday. Even copper was found as high as 14% after it saw its low this year of $8,504.50 a tonne in May. With no early resolve seen around the corner for the US and Europe, investors are left wandering to bet high on surging gold. Though predicting the valuating of gold can be tricky, it won’t b unfair to say that churning gains out of the current valuations’ from gold is difficult. However, Capital Economics is terming gold to be under-valued at around $2,400 an ounce if inflation is accounted for. However, gold is over-valued in front of equities. In addition, Capital Economics has revealed a possible relation between price of gold and a barrel of Brent crude which stands at 16. It’s believed that supply fluctuation plays a crucial role in triggering the value of industrial metal. In case the Chinese again relies on imports, construction and industrial activity would be escalated. While the correlation between gold and copper seems to be followed step by step, copper is believed to outshine gold at the time of crisis. While the world is watching the exact correlation between the two to unravel, the ongoing political tension and global concerns would certainly affect the relation.

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