The ratio of the S&P 500 to gold falls to 1.39, its lowest level since 2014, signaling a sharp shift in relative performance between equities and precious metals. The metric is down about 48% from 2022, reflecting diverging investor preferences amid changing macroeconomic conditions.
Since 2022, gold gains roughly 180%, while the S&P 500 rises about 45%. The widening gap underscores stronger demand for defensive assets as investors hedge against inflation, geopolitical risk, and policy uncertainty, while equity returns lag in real terms.
Analysts note that historically, every drop of the ratio below 1.5 coincides with periods of elevated market volatility. The latest move raises concerns that risk assets may face renewed turbulence if capital continues to rotate toward safe havens.
