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Commodity Strategy: Gold Has More Upside Potential vs. Oil, Strazzullo says

Posted Oct 02, 2009 06:56am EDT by Heesun Wee in Investing, Commodities, Recession
Related: gld, uso, oih, dxo, gdx, xle, oil

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.

 

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