Would gold /Oil rebound next week?? ?

Question

Oil and gold fall sharply over a month.. Is there a possibility to rebound .. At what level they can back up..........for short term, meidum term

Answer 1

We are also getting into the latter stages of summer and oil demand is going to dip even further after Labor Day.  Going into winter with a weakened worldwide economy cannot be good news for oil.  FWIW, I believe this is the reason for the sharp sell-off in oil over the past two weeks.  For a change, it looks like demand will continue to ever so slightly dip and it wouldn't surprise me if oil dips below $100 per barrel by the autumn.  

Answer 2

In my opinion, the two are very different commodities.  The price of oil is pretty much determined by supply and demand.  The price of Gold is more often an indicator of the strength or weakness of the dollar. The dollar has been gaining strength and that is driving the price of Gold down.  Nations can do without additional Gold but they must have additional fuel.  

Gold mostly just sits in vaults while oil is consumed.  

So, I do not expect either to increase during the next week.  In fact, they may continue to loose as dollar gains strength against the Euro and Congress threatens to increase oil drilling.

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