Gold’s correction since January looks very different when viewed relative to equities. Gold is now 21% below its January peak. Over the same period, the S&P 500-to-gold ratio has rebounded from roughly 1.27 to 1.79, a 40% move. That is a substantial relative-value reset. The surge above $5,500 in January had pushed gold’s outperformance to an extreme, compressing the S&P 500-to-gold ratio to a deep cyclical low. The subsequent correction has unwound much of that momentum premium. Yet the bigger picture remains intact: the S&P 500-to-gold ratio has rolled over from its elevated post-2011 range, indicating that gold has regained long-term relative leadership. Historically, these regime shifts can persist for years, with sharp countertrend rallies along the way.(BloFin Research)