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What the gold/oil ratio is telling us
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Tuesday, December 15, 2009
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From Hard Assets Investor:

Just as sailors and aviators rely upon thermometers, barometers and other gauges to plot their courses, investors use indicators of their own to map the economic landscape, among them the gold/oil ratio.

When taken separately, oil and gold can tip you to certain goings-on in the economy: Oil tends to become more expensive when gross domestic product is on the rise, and gold turns bullish when the greenback falters.

But what about gold's relationship to oil? Can the interplay between the two commodities-expressed in the gold/oil ratio-tell us...

Read full article...

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Topics: Gold | Energy | Commodities
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