Gold vs. Treasuries - What Stops the Train Except Itself? Gold may have started backing down from its highest level vs. the Bloomberg US Treasury Total Return Index since 1983. My graphic highlights a key force that could solidify a peak in gold relative to Treasuries: a bit of back-and-fill from the highest S&P 500 vs. the public debt ratio since 2001. Surging deficit spending is often cited as a reason to own gold, but the metal's 50-week correlation with the S&P 500 at about 0.45, near multidecade highs, suggests equities may be an important driver. What incentive is there to curtail deficit spending if it helps fuel further stock-market gains? Stretched gold could be facing a challenging setup relative to stocks and Treasuries. It may take a crisis, such as a 20% stock-market drawdown, to restore deficit-spending checks and balances, with the midterm elections potentially adding pressure for fiscal restraint. Full report on the Bloomberg here: https://blinks.bloomberg.com/news/stories/tnibtbkiups8 {BI COMD} #gold #bonds #stocks @BBGIntelligence