Copper/Gold Ratio Suggesting Interest Rate Decline Ahead

The past two years have seen headlines dogged by and the Federal Reserve’s fight to end inflation.

That fight has seen the Federal Reserve raise interest rates over and over again… and have followed suit and risen sharply.

One ratio that we follow alongside the 10-year yield is the / ratio. It often hangs around the 10-year yields trajectory… until the spread gets too out of alignment and bond yields then come back to earth.

Copper/Gold Ratio Weekly Chart

reis

Today’s chart shows the last time we saw a “fish mouth” spread at (1) along with the current (and largest in a decade!) fish mouth spread at (2).

So the question is: Will one of the largest fish mouth spreads in the past decade resolve itself in lower bond yields (interest rates)? History suggests so. Stay tuned!