Gold prices have outperformed the S&P 500 index, with the S&P 500/gold ratio dropping to its lowest level since 2020.
According to Aakash Doshi of State Street Global Advisors, this trend reflects increased investor demand for safe-haven assets amid economic uncertainty, though it’s not necessarily a recession indicator.
The surge in gold prices to record levels above $3,000 per ounce has been driven by physical demand from China, central bank purchases, and the first significant gold ETF inflows since 2020.