The world is full of economic concerns. Inflation, economic slowdown, global trade, and international war.
So what’s next?
Today’s chart might share a glimpse into the future. Below is a “weekly” chart of the Copper to Gold price ratio.
Typically, when this ratio rises, the economy is strong, and interest rates are firm to rise. But when it's falling, there is great economic uncertainty, and rates tend to follow lower.
Recently, the Copper to Gold ratio closed below last year's lows.
If history is a guide, a break of support here would suggest a lower inflation risk and higher odds of interest rates falling. And perhaps an uncertain economy as well.
