Chart of the Day - Wednesday, April 29th, 2020

Today’s Chart of the Day was shared on Twitter by Bhagyashree (@sunsofttech). It is a chart of the Copper/Gold ratio with the 10-year US Treasury yield in the lower pane. The Copper/Gold ratio is often used as a barometer for global economic growth. When the ratio is rising, it means Copper is outperforming Gold, which is a healthy sign for risk-appetite and global growth. It is also highly correlated to the US 10-year Treasury yield. Over the past few weeks, the Copper/Gold ratio has been consolidating below the 2009 lows, and it's now attempting to break back above this key level. If Copper/Gold is able to break out and continue higher in the near-term, it would be a positive sign for risk-appetite, and the 10-year US Treasury yield would likely follow higher as well.