Dicker's Commodity Plan for Oil, Gold

Oil and gold are making big moves and need to be on your investment radar for next week. But they must be integrated into your investment portfolio based on the actions of other capital markets.

What do I mean? Well, oil posted tremendous gains this week, shooting past $66 dollars a barrel in trading of the July contract on the New York Mercantile exchange.

Parsing the fundamental reasons for the 28% rise in the cost of the crude barrel for the month of May can easily give investors reason to scratch their heads.

The weakening of the dollar, along with future inflation risks, are normally trotted out as arguments for the recent rise. But stockpiles are still more than 25% above five-year averages and growth numbers for the U.S. and emerging nation's economies are miserable, informing us that demand for oil won't be increasing any time soon.

What is more likely fueling the price rise is an increase in speculative funds attracted by the belief that oil is '"cheap" at least compared to 2008 prices. This has continued to push oil higher for the 17th consecutive week, regardless of other fundamentals contacting the market.

Gold has shown a similar trend, rallying up to around $970 dollars an ounce, up more than $100 dollars in the last month and a half. This is, in many ways, a much more significant rally than in the oil markets as gold is the quintessential inflation hedge.