A Look at the Gold to Oil Ratio

I found the image above at kitcocasey.com and it clearly illustrates the earlier gold to oil ratio that I wrote about.In the image, notice how when the red line representing oil crosses the yellow line representing gold the ratio is approximately 10:1. If oil prices remain strong, gold will have a long way to rebound to match the historical ratio.

I suspect that the USD index may rebound to 75 levels causing a downward trend for physical gold and doubly so for gold stocks.