Historically, when the copper-gold ratio and the 10-year yield diverge, the 10-year tends to follow the ratio. For example in the third quarter of 2022, yields moved higher while the copper-gold ratio moved lower.
I am close to getting a major SGS system buy signal for the precious metals sector and charts like Barrick are definitely impressive! We will be significant buyers of the miners if we get the signal.
The US dollar is still throttling gold. For years, gold has tended to rally when the USDX is weakening and vice versa. The dollar is affected by changing Fed rate odds.
What I can tell you in looking at the chart, it's a bear slope in the market. I can also tell you you've got a pattern that's very clear of lower highs and lower lows – that is bearish.
The market is now staying under very easily both the 200 and 100-day moving average of closes. You'd have to get over $2047.30 to negate the downtrend.
Investors with core positions will of course benefit in this scenario. For fresh buys, the big zone of focus for investors must be $1973, which is a key previous low.
We're down for the week by 1.6%. So, here's your test coming in, you can see how the market fell apart and today was a huge outside day to the downside.
Upper support is in the 4980-4997 SPX region, which if broken, will likely suggest that the pullback has begun, and I believe it will point us down to the 4802-4862 SPX region.
