Copper/Gold ratio; which way the break?

The Copper/Gold ratio continues sideways…

…keeping wide eyed macro watchers (or at least this macro watcher) in suspense.

I just don’t think it is wise to be caught guessing as we pass through the doorway to 2022. The Copper/Gold ratio, like so many other macro indicators, refuses to give its signal just yet.

The implication of this ratio is cyclical inflationary if this proves to be a consolidation prior to a new bull move, or counter-cyclical and possibly the inflated boom’s end if it breaks down. Two very different outcomes and as yet the ratio is not showing its cards.

copper/gold ratio

The daily chart above is actually playing out at a very important historical level. Cu/Au is at a potential limit point, which pretty much by definition also means that it is at a potential breakout point. Lurking, lurking, lurking as it has for nearly all of 2021. 2022 gonna be different. At some point the lurking will cease and direction – by which we may position in the markets (long and/or short) – will be had.

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