5
October
Gold Has More Upside Potential vs. Oil
5 October 2009 Yahoo News
Crude oil is trading near $70 per barrel. That's half of what it was worth in the summer of 2008, but more than double the four-year low of $32.40 a barrel reached at the end of that same year, according to Bloomberg.
So which direction is it headed?
Bill Strazzullo, chief market strategist at Bell Curve Trading, says oil is a moving target and predicts it will trade in a range between $55-$85/barrel.
Gold, however, is a different animal altogether. "Gold has the most potential here," Strazzullo says. While bears are concerned about deflationary pressures, some high-profile hedge funds are scooping up gold futures and Strazzullo is going with the same theme. He predicts gold could soon hit $1200 per ounce, on its way to $1400.
And what about bear Peter Schiff's comments that gold could climb to as high as $5,000 an ounce, if and when, the dollar crashes? "I don't see anything that high at this point," Strazzullo says.
