Oil and Gold: Why Both Could Rise for the Remainder of 2026

After a lacklustre few months, junior mining stocks have finally found traction, and that’s being led by gold.

Interestingly, that’s also happening while oil prices remain elevated.

You see, oil and gold have behaved as opposing asset classes in 2026; while one’s up, the other is down.

So is that trend shifting? Is it possible for both gold and oil to rise together?

Well, early signs show that it’s already happening…

At the beginning of the month, the gold market recorded one of its best weeks in years, as you can see below, the spike on the far right:

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After weakening over several months, gold underwent a sharp reversal at the start of August, recording one of the largest percentage moves in the broader gold bull market, which kicked off in 2024.

Gold (and commodities generally) surged on the back of weaker-than-expected US nonfarm payrolls data for July, and that cooled expectations for aggressive Federal Reserve interest rate hikes.

The news also dampened the US dollar’s strength, another major hurdle for the gold market.

Overall, this recovery rally illustrates how aggressively the resource market can move with the sniff of positivity.

In fact, July 2026 could turn out to be a key bottom in this market, and a platform to stage an ongoing recovery across mining, especially junior mining stocks.

What about Oil?

For now, fears of rate hikes are cooling, the US Dollar is hitting overhead resistance, and the negativity revolving around the geopolitical consequences of the Hormuz crisis is losing steam.

Generally, that’s good for everything… except oil.

However, I don’t think the consequences of what’s played out in the Middle East are over; in fact, the seasonality of the O&G market suggests this crisis could manifest again towards the back end of 2026.

Many oil and gas stocks have pulled back a little from their peak, but in many cases, they’re putting in strong technical support, potentially setting up for another rally higher.  

That’s why I think it’s important to keep oil and gas stocks on your watchlist. Any minor pullbacks should be viewed as a strategic long-term buying opportunity. 

Bottom line: as momentum returns to the mining and metals sector, oil and gas stocks certainly haven’t sold off like many would have expected. And that’s key to knowing why the bullish trend in the oil market is far from over.  

How are we positioning?

Regarding what I’m doing for my paid readership group, we continue to use market weakness to our advantage.

Last month, we capitalised on weakness in the precious metals space, adding a silver developer to our portfolio and doubling down on some existing gold plays.

And that’s what we do… Finding ‘special situation’ opportunities in the resource market.

Another example: in late 2025, we invested heavily in the unloved North American O&G market.

In some cases, locking in 100%-plus gains as the oil crisis took hold barely 6 months later.

One of those strong performers was Kodiak Gas Services [NYSE: KGS]. Kodiak offers a range of services to oil and gas producers across North America.  

As the demand for Kodiak’s services rocketed higher, revenue surged as American oil and gas production ramped up to meet demand from Asian buyers.

But that’s then, this is now…

Another important low in the O&G market could be forming… and that could set up the traditional energy market for a potential rip into the back end of 2026.

That outlook is based on several seasonality trends I track in the traditional energy market: a mid-year lull followed by an end-of-year spike. A seasonal trend that re-awakens whenever this market comes back to life. 

2026 is the first year the O&G market has turned active in a long time, and that’s why I believe this seasonality effect is going to become more apparent.    

There’s plenty of opportunity in the resource market right now. So, if you’d like to learn more, you can do so here.

Until next time.