Unique Commodity Indicator Pointing To Rally In Treasury Bonds | Investing.com


Higher commodity prices have seeped into everyday costs (food and energy). At the same time, interest rates have also been rising.

That’s a bad combination for everyday America.

But perhaps there is some relief on the horizon-at least in the form of lower interest rates.

Today’s chart looks at the / price ratio graphed against the . As you can see, they tend to follow each other directionally.

Copper/Gold Ratio Vs. 10-Year Treasury Yield

Copper/Gold Ratio Vs. 10-Year Treasury Yield

The copper/gold ratio has been trading sideways for the past year but looks to be working on a breakdown below support. If this occurs, there is a good chance that bond yields (interest rates) will head lower as well.

Historically speaking, a decline in the copper/gold ratio should be good news for bonds and bad for yields (even short-term). Stay tuned!



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