Gold is going higher, so it must be the case that commodities are also going higher? The data tells us otherwise. Commodities, on average, have been rangebound, but the gold versus commodity ratio tells a different story. The gains in gold are the result of something different. It is driven by the demand for a safe asset, not for its use in some production process or for consumption.
Does this mean that commodity prices should see a gain in the future? There could be a general commodity rise, but it is not in the card based on a ratio. Sometimes a charge is interesting but not informative.
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