Posted by hornsant on 15th of Jun 2009 at 05:03 am
Another way to look at gold is by using that oil/gold standard
10:1, being 10 Bs of oil = 1 Ounce of gold. It does not mean
that the mkt will ever be there but it gives you an idea about
oversold/overbought condition, both will tend to find
equilibrium and a price divergence between them will imply
that one or both will start a correction towards that 10:1
relation. Oil has risen from extreeme oversold condition of app 30$
a barrel to near 75$ and it seems to have toped, at the same time
gold has retreated from that near 1000$ mark...gold could come down
further towards the 800 print... will see.
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Another way to look at
$400 gold
Posted by hornsant on 15th of Jun 2009 at 05:03 am
Another way to look at gold is by using that oil/gold standard 10:1, being 10 Bs of oil = 1 Ounce of gold. It does not mean that the mkt will ever be there but it gives you an idea about oversold/overbought condition, both will tend to find equilibrium and a price divergence between them will imply that one or both will start a correction towards that 10:1 relation. Oil has risen from extreeme oversold condition of app 30$ a barrel to near 75$ and it seems to have toped, at the same time gold has retreated from that near 1000$ mark...gold could come down further towards the 800 print... will see.