We have consistently warned (and continue to do so) that gold’s advance would be marked by high volatility and occasional sharp reversals that would lead some to believe the long bull market in gold has ended - and we will continue to hold this view even if the metal falls back yet another $100 an ounce.
When taken separately, oil and gold can tip you to certain goings-on in the economy: Oil tends to become more expensive when gross domestic product is on the rise, and gold turns bullish when the greenback falters. But what about gold’s relationship to oil? Can the interplay between the two commodities—expressed in the gold/oil ratio—tell us anything about our current economic prospects?
In China auto sales in November 2009 continued their torrid growth, with sales up by 93% compared with November 2008. China is now the world’s largest automobile market, a fact that was corroborated by General Motors’ recent announcement that it sold more cars in China in November than it did in the US.