Gold Vs Crude Oil

Gold Vs Crude Oil

Gold Vs Crude Oil

$GLD, $USO

Some analysts say that Gold is looking expensive in here, but the rally may be just getting underway.

In the last month traders have pushed Gold futures to near a 9-month high. And if the history of Gold’s relationship with Crude Oil is a guide, that surge may last longer than any geopolitical tension.

That divergence in price may still be going, meaning Gold should continue to outperform WTI Crude Oil before the 34-month cycle ends, according to a study of past trading patterns for the 2 assets.

 

Gold has rallied during the recent market setback and is now testing its Key resistance at 1,300. That is the mark that turned back rallies in April and June of this  year, so Gold clearly breaks above 1,300 it will very Bullish the precious Yellow metal.

Driven by technical factors and geopolitical issues managed money is moving into Gold. Net-Bullish bets on the metal are the highest since October, according to Commodity Futures Trading Commission (CFTC) COT data.

Also, investors added $321-M to the SPDR Gold Shares ETF (exchange-traded fund) (NYSEArca:GLD) so far this month, while pulling $540-M from the SPDR Energy Select Sector fund, according to the data.

HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Bullish (0.25) Bullish (0.38) Bullish (0.27) Neutral (0.11)
HeffX-LTN Analysis for USO: Overall Short Intermediate Long
Neutral (-0.01) Neutral (-0.11) Neutral (-0.04) Neutral (0.11)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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