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Tuesday, August 9, 2022

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Unique Commodities Indicator Pointing To Treasury Bonds Rally

Courtesy of Chris Kimble

Higher commodity prices have seeped into everyday costs (food and energy), and 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 takes a look at the Copper/Gold price ratio graphed against the 10-year treasury bond yield. As you can see, they tend to follow each other directionally.

The Copper/Gold ratio has 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 if short-term). Stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.

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