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Gold prices have surged more than 300% in 10 years (2015-2025). Despite gold having stock-like volatility, people often associate the metal as a safe haven. Therefore, it is interesting to compare gold prices with the consumer sentiment index. Over the same 10-year period, consumer sentiment has steadily declined while gold prices have climbed. The inverse relationship suggests that as economic confidence weakens, investors increasingly allocate capital to perceived safe havens such as money market funds and, somewhat paradoxically, gold.
Source: University of Michigan, Yahoo Finance, The Business Week Graphic
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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