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Stock Market and Gold Correlation

by Timothy Straiton
Friday 13th March 2020

The current stock market crash has brought the Stand & Poor's 500 index to 2480 and is now 23% under its 40 week moving average. Such a violent move was last seen in November 2008 when this index was trading 54% below its 40 week moving average. Gold and all precious metals have also been dragged down in this "throwing the baby out with the bathwater" operation. A similar pattern could be observed in the 2008 massacre, after which the recovery in precious metals was even more violent than the preceding move down. The chart above shows the spot gold price superimposed on the Standard & Poor's 500 index. Gold is in yellow, the S&P500 Index is in green. It is highly likely the current sell out in precious metals and mining stocks will be of short duration.

Charts courtesy of