Financial market overview
Copper-Gold Ratio Signals Economic Slowdown, Falling Rates and Inflation
2023.05.16 03:52
The world is full of economic concerns. , 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 to price ratio.
Copper/Gold Ratio Weekly Chart
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.
View Carl Icahn’s Latest Filings on InvestingPro
