Gold has been reaching new all-time highs, reinforcing its role as a hedge against inflation. At the same time, copper is displaying a bullish Elliott Wave count, suggesting continued strength in industrial metals.
We can compare these two metals to see if one is outpacing the other. The ratio of copper to gold has not reached a new low below 2020. This suggests copper remains strong. With both metals remaining strong, it is pointing towards higher inflationary pressures ahead.
Rising copper prices historically correlates with economic expansion and inflationary trends.
Meanwhile, gold's record-breaking prices suggest investors are bracing for persistent inflation. When these two signals align—gold soaring and copper rallying—it’s a strong indication that inflation is not just here to stay but could accelerate further.
For a detailed Elliott Wave analysis on copper’s bullish breakout, check out our latest insights from Alchemy Markets.
~Jeremy Wagner, CEWA-M
