SPX-Gold Ratio Nears Critical Juncture, Signaling Potential Risk-Off Shift
The SPX-Gold ratio, a key barometer of market sentiment, is testing a multi-year support level. A breakdown could mark the end of the risk-on era that has defined the past decade. When equities weaken against gold, capital typically flees to SAFE havens—a pattern historically tied to tightening financial conditions and elevated volatility.
Analysts are watching this inflection point closely. The ratio's failure to retest prior highs suggests waning confidence in growth assets. "If SPX breaks down against Gold, the environment we've known for 10 years changes completely," says Benjamin Cowen, a prominent market observer. The stakes are high for crypto markets, which have thrived in the risk-on regime.