Alert!

The first alert is cheap gold....

Both Gold and oil respond similarly to inflationary pressures. Over the past 25 years, one ounce of gold has bought, on average, 15 barrels of oil. When an ounce of gold can buy 20 barrels of oil, it's expensive and due for a fall. When an ounce of gold can buy less than eight barrels of oil, it's cheap and due for a rise. Right now, an ounce of gold buys you just 6.5 barrels of oil – less than half its traditional purchasing power.

There's no guarantee this will work out quickly. But it's worth keeping on the radar. If oil stubbornly refuses to correct from its levels above $140, gold could easily pop up to $1,000 and beyond in just a few days.

The second alert is: Oil.

The International Energy Agency's warning is the starkest sign yet that even record oil prices above $140 a barrel have not yet not done enough to balance demand growth from countries such as China with sluggish supply increases. Ironically with the increased price and hence a higher profit margin, it will be an even bigger push factor for oil to be charged more highly.