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It was just two weeks ago that the markets’ bullish fervor came into question. The May 15, 2025 trading session saw gold (again) lead the S&P 500 in the performance stakes – in a big way.
At that point, it was an indication that the rally was about to run out of gas.
Today we’re seeing something similar develop. The S&P 500 is up a paltry 0.32% as of this writing, while gold is up more than 2.5%. This is the market saying “Maintaining purchasing power is more important than chasing real returns.”
We can see other traces of this underlying sentiment elsewhere, like the weakness of bonds and the strength of Chinese equities. (Are countries like Japan and China in a position where they need to sell our debt to prop up their markets?)
Today, the yen is strengthening against the dollar and the Chinese yuan is in a holding pattern. How does this translate to gold and silver? Well, if you’re a seller of US debt and the dollar, some of that may spill over into precious metals.
Let’s take a deeper dive into these dynamics and some of the option activity that’s driving bonds, gold, silver, and action in China.
