Formula & Calculation Mechanism
Spot Copper Futures Price (HG=F) divided by Spot Gold Futures Price (GC=F)
Copper is Doctor Copper, reacting to global manufacturing & construction activity. Gold rises during monetary debasement and geopolitical anxiety.
Market Impact on US Equities & S&P 500
Rising Copper/Gold ratio signals economic expansion and upward pressure on 10Y Treasury yields. Falling ratio signals growth deceleration.
Historical Precedents & Bull/Bear Regimes
The Copper/Gold ratio leads 10Y US Treasury yield swings by 1 to 3 months with a high historical correlation.