Chart of the Day - Wednesday, April 16, 2025

🏆 Today's Chart of the Day was shared by John Roque (@daChartLife). 
 

• Gold had its best day in five years today, rising +3.3% to a record high of $3,346 per ounce. It finally cleared $2K last March and hasn't looked back since. 
   
• John points out that Gold's relative strength is becoming increasingly hard to ignore as it reaches multi-year highs versus the S&P 500. He notes that this "4th turning" has occurred at support dating back to the 1960s.
   
• Since this ratio bottomed in December 2021, Gold has outperformed the S&P 500 by about +70%. If this cycle is anything like previous ones, the performance gap between Stocks and Gold could continue to widen.
   

The Takeaway: Gold's relative strength is becoming increasingly hard to ignore as it reaches multi-year highs versus the S&P 500. If this ratio continues to make new highs, the opportunity cost of not owning Gold will grow.