|The process of "fracking" in the production of oil is increasing global oil reserves by around 11%. More importantly, it has been a success in the US but is yet to be used in Europe and Russia to the same extent. Nevertheless, this is expected to happen. The initial impact is that the world's dependence on Middle Eastern oil is falling fast and the stranglehold Opec has had on oil prices is weakening considerably. But how should this affect the gold price you may well ask?
To show how important a factor this is, we should look at how oil is paid for. The US Dollar is still the oil currency. Most nations that buy oil must sell their own currency for the US Dollar, and then use those Dollars to buy oil. This is how the US Dollar became the sole global reserve currency............................................Full Article: Source