We never know in these situations if gold will drop relative to oil, or if oil will rise outperforming gold.
There are 2 ways to approach this.
The traditional way would be to short gold and long oil at historic levels. This can be risky as I mentioned, we are in unchartered territory so the gold/oil ratio might climb even higher, leaving anyone short gold too early with a big hole in their pocket.
I am opting only to go long oil at this stage, and consider a gold short only if the gold chart technicals turn bearish.
Right now gold chart technicals are bullish, so I accumulate oil and watch to see how the reversion unfolds.
If I was to make a total guess, I think gold will be steady and/or rise, while oil will rebound on some kind of reaction from opec. Whatever the reason, you can be hedgers are out there looking at how to profit from this very popular spread.
I also keep in mind that if the stock markets grinds into a long bear market, any rises in oil may be temporary.
