TRENDING:

GBP/USD

XAU/USD

Dr Copper in the house

Michael Berman, PhD Signal2Noise (S2N) News

S2N spotlight

I came across this quote from Alfonso De Pablos from All Star Charts:

“Copper vs. gold is a key barometer for risk appetite and economic strength. Every time it’s dropped to these levels over the past 16 years, buyers have stepped in… I can’t think of a more logical place for it to begin outperforming gold than right here.”

I have never really heard much about this ratio before, so I decided to do some of my own analysis. The green line is the ratio of copper to gold. The blue line is copper.

Here is my 5 copper cents worth. There seems to have been a very strong relationship with this ratio in the past; I go back to 1980. It seems this relationship has broken down over the last 5 or so years.

I looked at the relationship with the ratio and gold and couldn’t see anything really. Maybe 5th cousins twice removed.

In summary, the relationship between the copper-to-gold ratio and the copper price has been strong over many decades. Not so much in the last few years. I wish I was as confident as an All-Star, the only logical conclusion I can come to is I have no clue what to make of the idea of copper outperforming gold.

S2N observations

My temperature is back to normal, but there may be some delirium left in the system.

S2N screener alert

There were so many new ATH yesterday; the one that I think deserves special mention is Bitcoin. Michael Saylor must be as drunk as a sailor on his good fortune. I still think gold is the more responsible play on currency debasement, but Bitcoin cannot be ignored.

S2N performance review

S2N chart gallery

S2N News Today

Author

Michael Berman, PhD

Signal2Noise (S2N) News

Michael has decades of experience as a professional trader, hedge fund manager and incubator of emerging traders.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.