Gold

Copper/Gold Ratio Breaking Out?

 

The ratio peaked in the summer of 2018 and created a series of lower highs over the past two years.

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The strength of late has the ratio attempting to break above dual resistance at (2).

If the ratio continues to push higher and succeeds in breaking out, Copper(NYSEARCA:JJC), Basic Materials (NYSEARCA:XLB), and Freeport (FCX), should experience nice upside action!

Bonds would most likely get nervous if this ratio continues to plow higher. If the ratio does remain strong, (NYSEARCA:TLT ) should perform poorly and TBF should do very well!

An important long-term resistance test is in play currently. What this metals ratio does in the next couple of months, will send an important macro message to the markets!