Market Enters 'Risk-Off' Mode As Analyst Predicts This Signal Flashing Warnings Similar To 2020, 2008 Crisis

The U.S. stock market is exhibiting a “risk-off” sentiment as the gold-to-silver ratio triggers a warning signal reminiscent of the 2020 and 2008 crises, according to analysis from Bravos Research.

What Happened: In an X thread, the firm highlighted a recent breakout in the gold-to-silver ratio, a metric closely watched to gauge market risk appetite. This signal indicates that traders are increasingly favoring the safe-haven asset gold over the more volatile silver.

The ratio stood at 99.59 as of Tuesday, 3:05 a.m. ET. This ratio represents the number of ounces of silver that are equivalent in value to one ounce of gold.

Bravos Research points out that similar breakouts in the gold-to-silver ratio preceded significant market downturns, including the 2022 bear market, the 2020 COVID-19 crash, and the 2008 Great Financial Crisis.

The current breakout, following a period of consolidation since 2022, suggests a potential shift towards greater market instability and a move away from riskier assets.

15/ This is what the gold-to-silver ratio looks like since 2020It just broke out above a major basing pattern that had been forming since 2022This ...

https://www.benzinga.com/25/04/44679385/market-enters-risk-off-mode-as-analyst-predicts-this-signal-flashing-warnings-similar-to-2020-and-2008-crisis