I had a pretty interesting conversation today with Peter George an American broker about currency, interest rates, oil, and precious metals. He pointed me to the OIL/Gold ratio shown below:

Note that the ratio is 23 today.

My take:
If you look at the oil Rig Count, that shows the amount of rigs that are currently active in the USA and then think through that the rig count decline is mostly due to rigs being pulled off tight oil – shale oil fields because of the decline in prices making these fields less economic then this may point towards an emerging increase in oil prices in both US$ and Gold as (over) supply comes off.

Baker Hughes reported another significant decline in the rig count for the week ending on February 6. The oil services firm reported that 87 rigs were pulled out of operations last week, which followed a record-breaking 94 rig decline the week before. The number of active rigs is now at its lowest level since 2011, and is down 29 percent since October.