Copper/Gold ratio is trying to break above resistance, but gold in itself doesn't look terrible. Should be a good battle to watch over the next week or two. $HG_F $GC_F $GLD $GDX $GDXJ pic.twitter.com/ULKqoQmyv1
— Matthew Timpane, CMT (@mtimpane) October 20, 2020
Today’s Chart of the Day was shared on Twitter by Matthew Timpane (@mtimpane). It’s a chart of the Copper/Gold ratio over the past decade. Copper reached a two year high today, pushing the Copper/Gold ratio to the highest level since February. The Copper/Gold ratio is highly correlated to the 10-year US Treasury yield. Pull up a chart of the two overlayed, and you’ll notice they pretty much move in lockstep. If this ratio continues to push above long-term resistance, it would be logical to see interest rates head higher as well. Stay tuned!