Gold Hits 14-Year Correlation High with S&P 500 as Risk Appetite Wanes on June 29

According to Capital Economics analyst Kieran Tompkins, gold prices declined in Asia early trading on June 29, with the precious metal increasingly behaving like a risk asset rather than a traditional safe haven. The analyst noted that gold's correlation with the benchmark S&P 500 index reached its highest level in approximately 14 years, driven by deteriorating risk appetite for artificial intelligence-related assets. Tompkins expects gold prices to face further pressure as speculative enthusiasm cools and equity markets weaken.
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