KITCO NEWS — Gold prices in relation to oil are reaching record levels as the ‘fear trade’ pushes investors to find a safe-haven, but one market technician says he’s focusing instead on the metal’s correlation to lumber. 'We look at gold in a different way than a lot of investors,’ Charlie Bilello, research director for Pensions Partners, told Kitco News Thursday. He explains that the relationship between gold and lumber prices are indicative of volatility in equity markets. According to Bilello, lumber reflects the state of the country's consumer-driven economy, which is so focused on housing. 'You don’t want to see gold, which tends to be more uncorrelated to the economy, outperforming lumber,’ he says. Equity markets have had their worst start in history so far this year as gold prices rallied, and Billelo points out that all the while, the yellow metal has been outperforming lumber.
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