Reasons for the huge divergence between US stocks and gold

Recently, there has been a significant divergence in the performance of US stocks and gold. Taking April as an example, as of yesterday, the Nasdaq index rose 13.5% this month, while gold only gained 0.8%, a very large gap.

Many people find it strange that gold and US stocks fell sharply together when the war started, but when the situation eased, gold did not follow US stocks in a strong rebound.

I think the reason for this is that oil prices are still high, inflation risks are still rising, the probability of interest rate cuts has decreased, and US bond yields remain elevated. As a product that does not generate interest itself, gold's attractiveness is lower when the US dollar index is high and US bond yields are high.

However, US stocks do not rely on interest rate cuts when liquidity is not a problem. As long as oil prices are not at extreme highs and there is no risk of rate hikes or recession, it's fine. Moreover, the profit expectations of US companies have been positive recently, and the US earnings season has boosted market optimism.

Therefore, the divergence between the two has become very obvious.

$iShares barclays 20+ Yr Treasury Bd(TLT.US)$SPDR Gold Shares(GLD.US)$Invesco QQQ Trust(QQQ.US)$Intel(INTC.US)$Tesla(TSLA.US)$AMD(002623.SZ)