This morning’s futures charts of the Copper/Gold Ratio…
Copper/Gold (daily) has been quite a star during the rally built off the back of the devaluing US dollar. That is as it probably should be because the only thing the buck has going for it is its utility as a haven for liquidity seeking asset market refugees (today they are seeking anything but) and gold has those qualities relative to copper and other cyclical assets.
Copper/Gold (weekly) is butting its head up against a thick resistance zone. The party has come a long way, after all. Can holiday revelers take it up and out or is it coming time for caution on the reflation trades, at least temporarily? It’s not a wise guy question. It’s a valid one, from both bullish and bearish perspectives.
Copper/Gold (monthly) comes along and puts perspective to the whole affair. No further words by me needed (other than it’s just a bounce).
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