The gold rally provides vital context for the stock market. The ratio of the S&P 500 to the gold price, which effectively prices the index in gold rather than dollars, has tanked this year and is almost back to its pandemic-era low.
Combining gold with copper provides another alarming recession signal. The former rises when people are worried, while a gain in the latter shows that economic activity is expanding. So when copper drops to its lowest in gold terms in at least 38 years, that’s concerning (although it’s worth noting that the previous low in 1987 didn’t prefigure a recession):
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