synopsis

Gold is up about 32% this year even as the U.S. dollar Index languishes at a three-year low and the S&P 500 - a measure of broader market performance, declining over 12%.

Gold futures broke above the key $3,500 resistance, clocking a fresh record in late-Asian trading hours on Monday, before trimming some gains.

At last check, the yellow metal was trading up 1.64% at $3,481.51

After moving sideways from the COVID-19 pandemic years through the 2022 inflation-induced market downturn, gold has climbed steeply. The rally's slope has steepened since the start of the year as macro and geopolitical uncertainties roiled the market.

The weakness of the dollar also buoyed the precious metal, given that it is denominated in the greenback. President Donald Trump's reciprocal tariffs have ignited recession fears, driving down the dollar.

Gold futures ended 2024 with over 27% gain at $2641 an ounce, although off the year's high of $2,801.80. They broke above the $3,000 mark for the first time on March 12, just before the stock market downturn began. 

Gold is up about 32% this year even as the U.S. dollar index languishes at a three-year low and the S&P 500 declining over 12%.

In a post on X, gold bull and economist Peter Schiff said that the move in gold is abnormal, as it climbed about $58 overnight. "Gold is not just any commodity. It's money," he said.

"This is the end of the U.S. dollar's dominance. Life in America is about to change in ways few can imagine," Schiff added.

In a report released last week, Saxo Bank Head of Commodities Strategy Ole Hansen said he expects heightened global economic tensions, the risk of stagflation — a combination of lower employment, growth, and rising inflation — and a weaker dollar to continue to support gold in the near- to medium-term. 

The SPDR Gold Shares (GLD) exchange-traded fund (ETF) has moved in tandem with the underlying commodity and is up over 30%. The iShares Gold Trust (IAU) ETF has also gained 30% this year.

On the other hand, the SPDR S&P 500 ETF (SPY) ETF and the Invesco QQQ Trust (QQQ) ETF are down over 12% and 15%, respectively, for the year-to-date period.

The GLD ETF was the top-trending ticker on Stocktwits early Tuesday.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<