A Subtle Yet Powerful Divergence

posted in: Charts, crude oil, Gold, S&P 500 | 0

Gold has outperformed stocks (S&P 500) during 2015:


Gold_vs._SPXWhile Treasury bonds (+3.15%) have easily trumped stocks (-5.19%), precious metals, and commodities (CRB -15.02%) during 2015 it is notable that gold (-4.39%) has actually outperformed stocks during a year in which sentiment on the yellow metal has tumbled to fresh multi-decade lows. This is a subtle yet powerful divergence between sentiment and price that could signal the beginning of a larger shift in the 6+ year equity bull market and the 4+ year bear market in precious metals.