Gold and Stocks Are Rising Together — Here’s What That Means

Both gold and the S&P 500 are approaching record highs — an unusual occurrence that’s raising eyebrows on Wall Street. Why? Because these two assets typically don’t move in the same direction.

Stocks tend to climb when investors feel confident about economic growth and are willing to take on risk. Gold, by contrast, is a classic safe-haven asset — a place to hide when uncertainty looms. So when both rally at once, it reflects a market caught between two competing mindsets.

“It’s like watching someone eat salad and dessert at the same time,” said Adam Koos, president of Libertas Wealth Management. “Investors want to be smart — but they’re also bracing for what could go wrong.”

Koos notes that while it’s possible for stocks and gold to reach new highs simultaneously, it’s not typical. When it does happen, it often signals a rare mix of optimism and anxiety — and that’s exactly what we’re seeing now.

On one hand, the stock market is riding a wave of enthusiasm fueled by artificial intelligence and hopes for a “soft landing” — an economic slowdown without a recession. On the other hand, gold is rising due to deeper concerns: mounting government debt, a weaker U.S. dollar, and ongoing central bank demand.

Normally, gold and the S&P 500 are somewhat negatively correlated. When they move together, it often points to underlying fears — such as inflation, currency weakness, or a Federal Reserve that may soon cut interest rates.

So far in 2025, gold has been the stronger performer. As of Monday, gold futures were up nearly 27% year-to-date, hovering just 2.1% below their April 21 record. The S&P 500 has gained just 2.1%, but that includes a sharp rebound from losses tied to April’s tariff announcement.

Dina Ting, head of global index portfolio management at Franklin Templeton, suggests the unusual alignment may be driven by a mix of “dovish Fed expectations, fiscal stress, and broader structural concerns.”

In fact, both assets hit record highs on the same day earlier this year — February 18 — with the S&P 500 closing at 6,129.58 and gold settling at $2,949.

So what’s going on?

“Equities move on growth expectations like earnings and rates,” said Keith Weiner, CEO of Monetary Metals. “Gold responds more to fear — things like inflation, debt, or geopolitical tension.” Right now, both growth optimism and fear are elevated. Investors are hedging their bets, buying both assets to cover all bases.

While it’s not the norm, this kind of dual rally isn’t entirely surprising, said financial advisor Harley Kaplan. “There’s a lot of global risk,” he said. “Gold offers protection. Stocks show confidence in the future.”

A Look at the Gold-to-S&P 500 Ratio

One key metric to watch is the gold-to-S&P 500 ratio — essentially, how many ounces of gold it takes to buy the index. The ratio has climbed from around 1.5 in April to roughly 1.76, which Koos describes as “elevated but not extreme.”

When the ratio rises, it means stocks are outperforming. When it falls, investors may be shifting to safety. Right now, it suggests a cautious balance — confidence in stocks, but not at the expense of gold.

Could we see both assets break records again? It’s possible, Koos says — but it would require a unique set of circumstances: falling real interest rates, central bank gold buying, ongoing AI-driven growth, and just enough uncertainty to keep investors nervous.

“It’s a fragile balance,” he said. “Like spinning two plates at once — it can be done, but it takes constant movement and the right conditions to keep everything in the air.”