Here is a four-panel chart showing the recent strength of gold and its outperformance versus the other main asset classes.
Here’s the chart:
Let's break down what the chart shows:
The yellow line is the Gold ETF index price.
The blue line is Gold relative to Bonds.
The gray line is Gold relative to Stocks.
The black line is Gold relative to Commodities.
The Takeaway: If you didn't know already, we’re in the midst of a massive gold rush.
Gold has been an outstanding place for your money since breaking out of its multi-year base in early 2024.
The new absolute and relative highs we’re seeing are signals of strength, not weakness.
When the lines go from the lower left to the upper right, we call those uptrends.
Right now, gold is at fresh all-time highs on an absolute basis, and it’s showing remarkable strength with 4-year highs relative to US stocks. Additionally, gold is achieving new all-time highs relative to bonds, and it’s also making 4-year highs relative to commodities.
As we move into Q2 of 2025, the potential for gold is huge!
If you're fighting these trends, you're putting yourself at a disadvantage.
Grant Hawkridge | Chief Aussie Operator, All Star Charts
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