S&P 500 and Gold Are Both Chasing Record Highs. Here’s Why It's So Rare

Both the S&P 500 and gold are nearing their all-time highs—a rare and intriguing scenario that’s left many investors scratching their heads. Typically, when stocks are surging, it’s a sign of strong investor confidence and a willingness to take on risk. Gold, on the other hand, is widely seen as a safe haven, attracting buyers during uncertain or turbulent times. So how can both be thriving at once?

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Adam Koos, president of Libertas Wealth Management Group, likens it to “watching someone eat salad and dessert at the same time.” In other words, investors are playing both sides—pursuing risk through equities while simultaneously hedging with gold. It’s not unheard of for the S&P 500 and gold to climb in tandem, but it’s certainly uncommon. When it does occur, it usually reflects a complex mix of optimism and anxiety, Koos said.

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This year, both markets have posted impressive gains, but for different reasons. The S&P 500 is being buoyed by hopes of a “soft landing” for the economy and AI-driven corporate earnings growth.

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Meanwhile, gold is responding to long-term structural risks—things like rising government deficits, a potentially weakening U.S. dollar, and central bank demand from nations looking to reduce their dependence on U.S. assets.

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Koos pointed out that the S&P 500 and gold tend to be inversely correlated. Typically, when one goes up, the other trends down. So when both are on the rise, it hints at deeper underlying market themes. These can include concerns about inflation, expectations of a more accommodative Federal Reserve, or broader unease around the global financial system.

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As of Monday, gold futures had surged nearly 27% for the year and were just 2.1% shy of their all-time high from April 21, according to Dow Jones Market Data. The S&P 500, while only up 2.1% for the year, has recovered significantly from the sharp drop that followed former President Donald Trump’s announcement of sweeping tariffs on April 2. As of Friday, the index was about 2.3% below its own record, last set on February 19.

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Dina Ting, head of global index portfolio management at Franklin Templeton, explained that the unusual synchronization between gold and the S&P 500 may be driven by a mix of dovish expectations for the Fed, fiscal imbalances, and structural concerns. Earlier this year on February 18, both assets hit record highs: the S&P 500 closed at 6,129.58, and gold settled at $2,949.

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Keith Weiner, CEO of Monetary Metals, explained that equities and gold typically react to very different forces. Stocks respond to growth-related factors, such as earnings and interest rates, while gold reacts to fear-based concerns like inflation or high debt levels.

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At the moment, both sets of influences seem to be heightened. Investors are hopeful about future growth, yet still wary enough to seek safety in gold. That’s led many to diversify across both assets, hoping to gain from stock market momentum while also insulating themselves against potential economic shocks.

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Harley Kaplan, an independent financial advisor in Massachusetts, echoed that view. Emotions play a big role in market behavior, and given the heightened geopolitical and economic risks, it makes sense that investors would embrace both optimism and caution. While equities reflect confidence in the future, gold represents a hedge against instability.

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An important dynamic to consider is the gold-to-S&P 500 ratio, which measures how many ounces of gold are needed to buy one unit of the index. Franklin Templeton’s Ting noted that this ratio has rebounded from earlier lows and is now “elevated but not extreme.” That implies there’s still strong belief in stocks, but not enough to dismiss gold altogether. At roughly 1.76, the ratio leans in favor of gold, according to Koos. Back in April, it dipped to about 1.5.

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When the ratio drops, it indicates gold is outperforming, which often means investors are leaning toward safety or bracing for market volatility. A rising ratio, on the other hand, signals bullish momentum in stocks.

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Looking ahead, Koos believes it’s possible for gold and the S&P 500 to hit new highs together once more. For that to happen and be sustainable, it would likely require a combination of factors: falling real interest rates, a more dovish stance from the Fed, persistent demand for tangible assets like gold, and continued investor belief in long-term economic growth—all wrapped in an atmosphere of just enough uncertainty to keep fear trades alive.

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Koos compares the situation to “balancing two spinning plates.” While it’s possible to maintain such a balance for a time, it demands constant motion and very specific conditions. Any disruption in that balance could send one or both markets wobbling.

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