Since March 2026, gold has declined relative to the Russell 2000 index, falling from 2.0470 to 1.3250. The current level of 1.4790 is above the rising 50 day moving average of 1.4210 and makes a recovery towards the Fibonacci 38.2% retracement from the low at 1.60 likely.

A similar trend is developing in precious metal mining stocks in comparison to the Russell 2000 index. Rising bond yields have in the past suppressed gold, however recent market sentiment has shown that gold has become impervious to such developments. At the same time rising interest rates are likely to put additional pressure on small caps going forward. 

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