The Gold/Crude Oil ratio above shows how many contracts of crude oil it takes to buy one contract of gold. Notice after it reached resistance levels from 1989; back on 03/06/09 the ratio neared 22. Then, it took 21.8 contracts of crude oil to buy one contract of gold. This brought the question, "Would we see gold move lower or crude move higher, or neitheir?" So far, we have seen gold move from the close of 942.7 on 03/06/09 to a high of 962.6 on June 5th, 2009, a 2.1% gain, and crude oil move from the close of 45.52 on 03/06/09 to a high of 68.44 June 5th, 2009, a 50.3% gain. Clearly, the move in crude oil has been stronger and oil moved higher to gain ground against gold, pulling the ratio down to 14.1.
Now that the ratio is trading back under 15, the question will be, "Will we see crude oil continue to move in this direction?" (more)