Gold (XAU) trades near $4,330 as the S&P 500 holds near a record high. AI stocks have supported the rebound in the US stock market, but gold has struggled to keep pace. High real yields add pressure after the rate hike in September by the Fed. The gold-to-S&P 500 and Dow-to-gold ratios show whether that balance is shifting. I think that gold must hold $4,000 to avoid a deeper correction. This article presents the market developments, US stock market ratio analysis and price levels that could shape the next move in gold.
Gold Price Forecast: Gold Lags S&P 500 as Real Yields Stay High
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Key Points:
- The S&P 500 remains near its record as AI stocks lead the latest rally.
- High real yields continue to limit gold’s recovery.
- Gold needs to hold $4,000 to avoid a deeper correction.