Gold Outperforms Stocks Amid Inflation and Debt Concerns
Gold has surged 37% year-to-date, outpacing the S&P 500's gains by nearly fourfold. Since 2023, the precious metal has climbed almost 100%, while equities ROSE 67% in the same period. This divergence persists despite the market's obsession with AI as the next transformative technology.
Historically a safe-haven asset, Gold now moves in tandem with stocks—a correlation hitting 0.91 in 2024. The shift reflects growing investor concerns about persistent inflation and ballooning U.S. debt. With the deficit approaching $2 trillion, Treasury bond issuance weighs on fixed-income markets, altering traditional asset relationships.