Today's chart looks at the Gold & WTI Crude Oil Ratio, currently around 15...what does it mean? Over the last few years when the ratio has traded at the 13 level, it signaled that oil was over bought and should be sold. At 17 oil was a BUY. The 15 level is a neutral reading, but could either continue or reverse direction. Itz continues to look at WTI crude oil trending higher by year end, targeting $120 as noted in past posts. With a ratio of 13 and $120 oil that place gold's price at $1560. That said, if gold trends near term to $1460 & the G/O Ratio goes to 17:1 it would place oil at $86. Just some levels to look at. ITZ has entered Proshares Ultra Crude Oil, ticker symbol UCO, twice at $47. Now if the G/O Ratio does trend higher, ITZ has suggested a STOP on UCO set at $45.
The NOAA forecast on this year's hurricane season and the impact on oil, with Anthony Grisanti, GRZ Energy; John Woods, JJ Woods & Associates, and CNBC's Sharon Epperson.
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