Sign #1 is the Gold/Silver ratio ramming back upward after getting hammered yesterday. If it resumes its young uptrend from May there will be stress in many market areas, especially the non-Goldilocks stuff.
Sign #2 is the Gold/Copper ratio looking strong once again. The counter-cyclical metal with less inflation sensitivity and far less economic use is attempting to reestablish its uptrend. If this continues, it is a bad market signal, especially when married to the above.
Finally, signal #3 is the US dollar index, having held support and ticking a new high for the move that came after the test of 104.10 support. Recall our oft stated view that the only real fundamental in play for the US dollar is its reserve status and its role in receiving liquidity when markets go risk ‘off’.
So, are markets going risk ‘off’? I am not prepared to bet against it until/unless the Gold/Silver ratio, especially, breaks down.
Nice charts