Copper/Gold Ratio
The price of copper divided by the price of gold, used as a rough gauge of growth optimism versus fear.
In plain English
The price of copper divided by the price of gold, used as a rough gauge of growth optimism versus fear.
Copper is bought when factories are busy; gold is bought when people are scared. The copper/gold ratio pits them against each other. A rising ratio suggests growth optimism; a falling one suggests caution.
It has historically tracked long-term US government bond yields fairly closely, which is why bond and currency traders keep an eye on it. Relationships like this can break for long stretches.
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