In One Chart: ‘Buckle up!’ When oil and gold trade like this, it usually spells doom for the market

Oil prices CL.1, +0.43% are hovering around bear-market levels amid concerns over slowing global growth and the potential for tariffs to sap energy demand.

Gold GC.1, +0.20% meanwhile, has been heading in the other direction. Some of the same factors keeping pressure on oil have led gold to a five-session winning streak that’s propped up prices to levels not seen in more than a year.

This combination of rising gold and falling crude — rare as to the extent of the divergence — has delivered to some nasty consequences for the broader market over the years, as you can see by this illustration:

The chart comes from Crescat Capital’s Tavi Costa.

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