Implications of Extreme Gold-to-S&P Correlation The highest gold-to-S&P 500 (SPX) 60-day correlation in our database since 1975, as well as the greatest 180-day volatility disparity since 2007, highlights the historical aberration and potential burden on the stock market to remain resilient. My graphic features the recent bounce within the rolling-over pattern of the SPX measured in gold ounces. Will SPX/gold at 1.80x on June 26 continue rising or resume the downtrend since the peak near 2.66x at the start of 2022? My bias leans to the latter, notably due to the need for SPX/gold to prove otherwise near resistance. Managed money (hedge funds) at about 32% net-long of CME gold futures open interest don't seem stretched relative to the 20-year average near 25%. Futures positioning is less relevant for gold; a primary risk to the metal may be an ebbing beta tide. Full report on the Bloomberg here: https://blinks.bloomberg.com/news/stories/th2uhakgifqg {BI COMD} #gold #stockmarket #futures @Bloomberg(Mike McGlone)