Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Gold Oil Ratio at record High

20 sec read

Gold Oil Ratio

Now with One ounce of Gold one can buy 39 barrels of Crude OIL. And interestingly GOLD/OIL Ratio is at 30 year high The reason behind such a huge Gold/Oil ratio is due to predominantly due to plummeting OIL prices and whereas Gold prices inching upwards slowly and steadily.

Gold Oil Ratio - Zerohedge

Last 30-year average of gold/crude ratio is 17. That is crude is likely to trade more than 2.25x times twice as high as the current oil price. And according to ZeroHedge a spike in the ratio has resulted in “something systemically serious” on a global scale

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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4 Replies to “Gold Oil Ratio at record High”

  1. It is easy to manage ratio at lower price levels. However, when price increases along with ratio, the losses or profits increase exponentially.

  2. Rajendran, How to edit ATR and Pd lines in super trend to replicate 3,34 ?
    I am confused cause in the code there are 4 numbers,
    Like 4,1,3,100 in ATR line.

    What are those?

  3. While the information is quite helpful, can you tell me the direct financial implications of this ratio?
    Also, where do you see this trend going in the next 2 years?

    1. The Ratio in fundamental terms may be indicates crisis in place. But in technical terms it says possibilities of Oil bottoming out and mean reversion in place in the long run.

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