Gold near Breakout vs. Crude Oil

[Dr.No]

The gold / crude oil ratio is on the verge of breaking out of a fairly significant inverse head-and-shoulders formation:

http://thedailygold.com/chartstechni...vs-oil/?p=718/

[audrey_girl]

Re: Gold near Breakout vs. Crude Oil

gold at 8k?

rapidly approaching the end of days here?

Link: http://www.realclearmarkets.com/vide...8000_gold.html

[Mega]

Re: Gold near Breakout vs. Crude Oil

Schiff said $5000 in 3-4 years............the BIG question is will China/India etc jump in?.............If so & their people (1.1 billion in Inda/1.3 Billion in China) start buying Gold then $18,000 is NOT out of the question.

Mike

[LargoWinch]

Re: Gold near Breakout vs. Crude Oil

Gents, I do not know about you, but this chart tells me that Gold is fully/overpriced when compared to Crude.

If I had to buy something, I would buy Crude at this juncture.

I believe the gold buying (as EJ said) is getting quite a bit ... hmm ... crowded.

[Dr.No]

Re: Gold near Breakout vs. Crude Oil

Gents, I do not know about you, but this chart tells me that Gold is fully/overpriced when compared to Crude.

If I had to buy something, I would buy Crude at this juncture.

I believe the gold buying (as EJ said) is getting quite a bit ... hmm ... crowded.

Depends on which way it breaks. Right now it is near the center of the range, but close to a breakout that would indicate a likely further strengthening of gold vs. oil over the next few weeks to months.

[BadJuju]

Re: Gold near Breakout vs. Crude Oil

gold at 8k?

rapidly approaching the end of days here?

Link: http://www.realclearmarkets.com/vide...8000_gold.html

audrey: you have to be the biggest doom and gloomer on this site.

Ah, well, at least you have the elemental symbol for gold in your name! It is an auspicious sign. :p

[flintlock]

Re: Gold near Breakout vs. Crude Oil

Gents, I do not know about you, but this chart tells me that Gold is fully/overpriced when compared to Crude.

If I had to buy something, I would buy Crude at this juncture.

I believe the gold buying (as EJ said) is getting quite a bit ... hmm ... crowded.

I see it the same way .

[ThePythonicCow]

Re: Gold near Breakout vs. Crude Oil

I believe the gold buying (as EJ said) is getting quite a bit ... hmm ... crowded.

It doesn't matter if it's more crowded than before; it matters if it's less crowded than tomorrow.

[unlucky]

Re: Gold near Breakout vs. Crude Oil

It doesn't matter if it's more crowded than before; it matters if it's less crowded than tomorrow.

The mix of buyers is changing however, with both central bankers and hedge funds now entering the trade in larger numbers. I guess the CBs will be long-term holders of gold, but the hedgies will presumably be looking for short term exits.

[jpatter666]

Re: Gold near Breakout vs. Crude Oil

The mix of buyers is changing however, with both central bankers and hedge funds now entering the trade in larger numbers. I guess the CBs will be long-term holders of gold, but the hedgies will presumably be looking for short term exits.

Agreed. I see hedge funds jumping in to cook their books to show they were in gold. Once the report-painting is complete, they'll jump out. Potential for short-term trades, but be careful.

Longer-term I'm not worried about it although I think futures (and even miners or GDX) might be a good buy.