Finbold: Recession Fears Loom as the 'Dow Jones to Gold Ratio' Could Cross Rare Historical Level
Article by Aneena Alex in Finbold
At a time of growing uncertainty, a key recession indicator is offering hints about where the economy might land next.
Specifically, the Dow Jones to Gold Ratio, which measures the relative value of equities to gold, is approaching a critical support level that has historically signaled the onset of severe economic downturns, according to an outlook by FinanceLancelot in an X post on March 24.
Dow to Gold ratio as a key recession indicator
The Dow to Gold Ratio represents the amount of gold, measured in ounces, needed to purchase one unit of the Dow Jones Industrial Average (DJIA).
It shows the relative performance of U.S. stocks versus gold, with a high ratio indicating .....