From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
One of the most important risk ratios and easily the biggest snooze fest from the past year is finally starting to move.
That’s right – after going nowhere for more than a year, the Copper/Gold ratio is making a directional move! And believe it or not, it’s resolving in the opposite direction of interest rates.
Instead of following rates higher, Copper/Gold is rolling over to the downside and raising questions regarding risk appetite and overall market health.
And from the looks of today’s price action, Dr. Copper is breaking down on an absolute basis as well.
We can’t emphasize the importance of these developments enough. We’ve been awaiting resolutions of these ranges since early last year, and it’s finally happening.
Let’s talk about it.