Amo

Predicting Oil Prices Through Gold

I think that the suggestion of that ratio doesn’t take in consideration of the reversal move of the both Oil and Gold when it reaches the conclusion that the fair Oil price should be around $60.00. The actual ratio as calculated is 0.046 with Gold priced at $811.00 and oil at $37.00. In the coming two months I see gold at the $750 level and the Oil level should be at a level of $50.00 in order to sustain the 0.067 level. Will the deflation in place for the near future Gold is not that attractive and Oil might follow the path and drop to the $30.00. At this case we will have the 0.04 ratio which I think will be the bottom point for the market. After that I think the market will start to stabilize and go upwards. This might be the last correction for this recession (only in the case that we will not move towards a depression).