Many of the same overall trends and features exist in gold ETFs as in the overall stockmarket. For example AAAU shows similarity to SPY. As seen here, why would an investment in a gold ETF follow the same trends as the overall stockmarket?

  • Are you implying that they should not correlate because gold and the market do not correlate? Apr 15, 2020 at 14:18
  • 2
    It's important to differentiate between investing in physical gold, and companies related to gold (mining, storage, etc.)
    – Nosjack
    Apr 15, 2020 at 14:27
  • You write As seen here. Where do I look? Apr 15, 2020 at 16:20
  • 1
    @BernhardDöbler The word "seen" in this case was intended to be taken as "observed", or "witnessed", in the sense of "as evidenced by this example". Though if you are interested in charts, compare the last 3 months at marketwatch.com/investing/fund/aaau/charts
    – Caleb
    Apr 15, 2020 at 17:24

3 Answers 3


Why wouldn't they?

Companies that mine and produce gold products have shareholders, executive leadership, workers, labor challenges, HR departments, etc... just like every other company in the S&P 500.

They also have customers that may slow or cancel orders due to economic uncertainty, just like every other company on the S&P 500.


On a one-year chart, physical gold, after dipping down on a wide-spread financial-market margin financing shock, rebounded and maintained an uptrend while the stock market stayed lower.


Looking at the correlation table for the past 6 months returns from ETF Screen shows a correlation of 0.18, similar to GLD at 0.16. That's pretty close to non correlated in my book.

What you may be referring to is what happened during the recent meltdown, it may have felt pretty correlated, but usually during a crisis, all correlation go to 1 (as it did during the 2008 one).

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