Swiss-based commodity strategist Tavi Costa recently tweeted that “every secular bull market in gold I’ve seen has been followed by one in copper,” urging investors not to overlook copper if they’re bullish on gold. The chart accompanying his post shows the copper-to-gold ratio climbing above a descending trendline that has acted as resistance since the mid-2000s, a classic signal, Costa argues, that an extended bull market cycle could be underway.
The copper-to-gold ratio measures how many pounds of copper a single ounce of gold can buy. Historically, when this ratio breaks higher beyond long-term trendlines, such as the one from the 2005–2020 highs, it has often presaged multi-year gold rallies. Costa’s chart illustrates just such a breakout, with the ratio climbing above the yellow trendline and currently standing around 0.14.
As of the latest trading session, gold is hovering around $2,356 per ounce, reflecting ongoing investor demand amid global economic uncertainty. Meanwhile, silver is trading at approximately $38.50 per ounce, supported by both industrial usage and safe-haven interest.
Copper, often referred to as "Dr. Copper," is regarded as a vital indicator of global economic activity due to its widespread industrial applications. A robust copper market implies healthy industrial demand and growth. When copper rallies alongside gold, it traditionally marks cyclical shifts in growth expectations, often favoring commodities.
Matthew Turner, senior commodities analyst at XYZ Capital, remarks, “When copper gains momentum concurrently with gold, it typically signals that real yields and global growth expectations are aligning in favor of commodities.”
Meanwhile, Jane Liu, portfolio manager at Precious Metals Trust, notes: “Looser real rates and macro uncertainty often fuel gold’s ascent. Copper’s industrial updraft complements that narrative; investors should watch this pairing closely.”