Mean Reversion Can Feel Like a Crash: Gold/Crude - "Unsustainably high" may describe the 77 barrels of WTI crude oil equal to an ounce of gold on Feb. 20. Only the collapse to negative crude prices in April 2020 produced a higher gold/crude ratio. The graphic highlights how historically stretched gold/crude is vs. its 100-year mean and mode near 20. How sustainable is the near-record level of the ancient store of value relative to the most significant industrial commodity? My bias is that the chart suggests the next major commodities trade could be a gold-price reversion. Crude is an oversupplied bear market, and price spikes due to potential Middle East supply constraints are typically fleeting as they incentivize more US-led Western Hemisphere supply. Some detente could pressure gold toward $4,000 and mark 2026 as a multiyear peak, akin to 1980 and 2011. Full report on the Bloomberg terminal here: https://blinks.bloomberg.com/news/stories/tar869kiupt2 {BI COMD} #gold #crudeoil @markets(Mike McGlone)