Recently gold hit the $1,000 barrier, but retreated again towards a level of $900. In the meantime, oil stood under pressure and hovered for a long time around the $40 level. It is clear that for a long time gold sentiment was extremely bullish, while that of ‘black gold’ was extremely bearish.
Maybe this sentiment might deliver a golden opportunity: Long oil versus short gold.
I also seek confirmation using the GOR, the Gold/Oil-Ratio.
This ratio shows how many barrels of oil can be bought with one gold bar. At the moment, the GOR is ‘trading’ around 20.