She fears the recession that is looming on the horizon because “Dow Jones to the percentage of gold” can cross the rare historical level

At a time of increased uncertainty, the main recession indicates hints about where the economy may fall after that.

Specifically, the Dow Jones ratio to gold, which measures the relative value of the shares of gold, is approaching the level of decisive support, which historically indicated the emergence of severe economic contraction, according to the expectations. Camouflage In x mail On March 24.

Dow to gold as a major stagnation indicator

Dow to Gold represents the amount of gold, measuring an ounce, needed to purchase one unit of Dow Jones Industrial Maleer (DJIA).

It shows the relative performance of American stocks against gold, with a high percentage indicating the performance of a strong stock market and a low percentage of gold performance, and is often seen as a sign of market weakness or broader economic instability.

Historically, every time the Dow Dao ratio declined to gold and crossed under this critical threshold, it coincided with the beginning of the large economic shrines, which usually take about 18 months. This includes the great depression, the 1973 stagnation crisis, the 2008 financial collapse, and the 2020 Covid-19 accident.

Now, in 2025, the ratio escalates again towards this historical important level, which increases fears that there is another major economic transformation on the horizon.

In addition to these concerns, the declining momentum that is reflected in the main technical indicators such as MACD and RSI, as well as the high recession associated with unemployment, indicates that the current market conditions are very similar to the patterns that were seen before the previous contraction.

Wall Street Rights of recession

Dow to Gold Ratio is just one of the many flashing indicators that contribute to increasing recession fears. The recession is intensified in Wall Street in recent weeks, and is nourished by the growing economic uncertainty.

Economists in Goldman Sachs (NYSE: GS) have Arise Their expectations for the American stagnation over the next year, specifically indicating politics in Washington as a main source of risk.

In their recent outlook, the team led by Jean -Hatzius increased the possibility of recession for 12 months to 20 %, an increase of 15 % previously, noting the potential tariff and uncertainty in commercial policy.

Ensuring these concerns, the Bank of America’s career reconnaissance It revealed that 55 % of the fund managers are now looking at the global recession as the risks of the top tail. Moreover, the poll showed that the monetary levels jumped to 4.1 %, up from 3.5 % in February, which represents the highest level since 2010, indicating a classic trip to safety.

Consumer morale and economic data feed the landfill

Consumer confidence also achieved great success, as the Michigan University’s feelings index fell sharply in March amid fears of economic stability, employment and inflation.

Moreover, pioneering indicators indicate clear signs of economic weakness. The leading economic index in the conference council (LEI) to publish A successive decrease, decreased by 0.3 % in February 2025 after a decrease of 0.2 % in January, indicating the slowdown of industrial production, weakening retail sales, and decreased new home sales, indicating the cooling economy.

In addition to pressure, the global economic slowdown also weighs American exports and trade balances. Slow growth in major markets such as China and Europe exacerbates the risk, which may undermine the gross domestic product growth forecast for the rest of the year.

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