Core Viewpoint - The surge in gold prices to historic highs is seen as a hedge against the current concerns of the stock market being at historical peaks, driven by factors such as tariffs, inflation, and geopolitical instability [2][3]. Group 1: Market Dynamics - Gold futures reached a record high of $4,070.50 per ounce, while the S&P 500 index also hit a historical peak at 6,753 points [2]. - The uncertainty in the policy environment, including rising U.S. debt and geopolitical tensions, is prompting investors to seek hedging tools against market volatility [2][3]. - Historical data indicates that gold futures and the S&P 500 index have never both reached historical highs on the same day before 2024, despite brief instances in 2007 and 2020 [3]. Group 2: Investment Sentiment - The increase in gold prices, which have risen over 50% this year, is attributed to factors like "de-dollarization" and reduced exposure to U.S. debt [4]. - Gold is traditionally viewed as an asset with low or zero correlation to the stock market, but recent trends show a positive correlation between the two [4]. - Analysts express caution as both gold and the stock market are in an "melt-up" phase, raising concerns about potential market corrections if a triggering factor occurs [4][5].