Robin Brooks: Gold's S&P 500 Correlation Hits 0.50, Matching Bitcoin

Economist Robin Brooks reports that gold has lost its traditional safe-haven status on June 5, 2026, as its correlation with the S&P 500 climbed above 0.50—now aligned with Bitcoin’s equity correlation of roughly 0.55. The shift stems from heavy retail inflows during the late-2025/early-2026 debasement trade, which replaced institutional hedging demand with a more pro-cyclical investor base. Consequently, gold may decline alongside equities in risk-off periods, diminishing its diversification benefits. Investors are urged to reassess XAUUSD allocations while monitoring flows in commodities and crypto through 2026.