Gold’s severe correction and weak performance in relative terms has led many to ask if the bull market is over.
While Gold is correcting the move since 2016 or 2018, the better question is, has the bull market even started?
In recent years, I’ve written about how important it is for Gold to outperform the S&P 500. Gold can’t be in a real bull market unless it’s outperforming the stock market.
Gold had been outperforming the stock market but only briefly.
As you can see below, the real big move in Gold might begin around when the stock market and its valuation peak.
Recent years have been similar to the mid to late 1960s. Precious metals made huge moves off the bottom (in nominal terms), but Gold and hard assets didn’t accelerate relative to stocks until inflation broke higher in 1969.
Gold Vs S&P Weekly Chart