Why gold and tech stocks are rallying at the same time

Core Insights - Precious metals like gold and silver are experiencing historic highs, with gold prices rising 70% and silver prices increasing 130% this year, indicating a significant shift in market dynamics [2][3] - Simultaneously, tech stocks, particularly in the Nasdaq Composite, have surged approximately 21% year-to-date, driven by strong performance from major tech companies and investor enthusiasm for AI technologies [5][6] Group 1: Precious Metals - Gold and silver have reached all-time highs, with gold surpassing previous records and silver following closely behind [2] - The rally in precious metals is driven by geopolitical risks and expectations of a shift towards easier monetary policy by the Federal Reserve in 2026 [3][4] - Central banks globally are increasing their gold reserves, and inflows into precious-metal ETFs are contributing to rising asset prices, reflecting investor interest in safe-haven assets amid concerns over fiat currencies [4] Group 2: Tech Stocks - The Nasdaq Composite has rebounded after a softer start to December, with recent sentiment around AI economics helping to alleviate concerns about capital expenditures [6] - The last time gold and growth stocks moved in tandem was during the pandemic-era liquidity surge, highlighting a historical correlation between safe-haven assets and risk assets during times of economic uncertainty [7] - Over the past five years, the Nasdaq has increased over 80%, while gold has gained over 130%, showcasing the volatility and potential profitability of these trades [8]