Copper/gold ratio vs. oil price… EIA

I wouldn’t expect to see a copper/gold ratio chart in the EIA’s monthly Short Term Energy Outlook, but here it is:

”Brent and copper-to-gold ratio: Lower economic growth expectations have likely reduced crude oil prices during the past three months. Similar to crude oil prices, metals prices also appear to signify reduced market expectations for global economic growth. Copper is an industrial metal used in many economically sensitive sectors, such as construction and industrial production, whereas gold is a precious metal with little industrial use but is often considered a safe-haven asset. When copper prices rise relative to gold prices, it could indicate expectations of increased economic growth, but a falling ratio can indicate expectations of a slowdown in industrial and economic activity. When indexed to the beginning of 2019, both Brent crude oil prices and the copper-to-gold ratio peaked in April and have since declined (Figure 3). The rolling 60-day correlation between Brent crude oil prices and the copper-to-gold ratio reached a 3-year high in March 2019, and it has exhibited a positive correlation since February of 2018. When price series exhibit high correlation, it means the prices are generally responding to the same information, in this case demand-side factors. Fundamental economic and oil market data can be lagged for several months, and so commodity price levels and changes can provide real-time information about the economy.”