An increasing number of observers (including myself) tend to agree with the premise of this WSJ story($) regarding the near-term outlook for oil and gold though, admittedly, one Gulf Coast storm or one wayward Middle East missile could change that very quickly.
While never a big believer in the merits of the "oil-gold ratio" as a predictive tool, it may be telling an important story at the moment.Gold May Benefit as Oil Falls
Yellow gold, which often tracks the crude-oil market, could outperform black gold in the foreseeable future because of financial-sector and inflation jitters.
Some analysts also suggest that the rally in oil prices this summer may be overdone, which could lead to the metal's strength....MORE
Monday, July 21, 2008
Changing leads in the oil-gold tango
From The Mess That Greenspan Made: