Refer to this link:

http://www.kitco.com/ind/Hamilton/aug192005.html

This demonstrates that there is a traditional ratio between the price of gold and the price of oil. Generally, the ratio is about 13, but in recent months this ratio has failed. Oil has gone up but gold has not gone up commensurately. The gold/oil price ratio is currently only just above 6, the lowest level for many decades. The "correct" price of gold with oil at $70/barrel is about $900/Toz.

The gold price has done nothing for a couple of months now.

So why won't it happen? Either:

1. oil price is exessive and will fall;

2. gold price is too low and will correct;

3. the historic ratio has broken down for some reason.

Any ideas?

This article might anwer your question

http://www.financialsense.com/editorials/m.../2005/0831.html

Crikey.

Edit: No wait, apparently that guy is a wacko. Anybody in the know?
Edit2: No offence if it's you, DP1.