Buying What Glitters

A late-day rally sent the S&P 500 up 0.24% to a new record high of 6,130. But gold had a much better day, jumping 1.8% to a record $2,952 per ounce. This "safe haven" asset is now up 10.6% ytd, better than the S&P 500's 4.5% and bitcoin's 1.8% gains so far this year. But gold's recent ascent isn't a 2025 story. It started during February 2022 when Russia invaded Ukraine. In real terms, gold is up 29% since the war started, causing the US to freeze Russia's dollar reserves (chart).

So with US Secretary of State Marco Rubio negotiating a possible bilateral deal between the US and Russia today to end the war, why is the gold price still climbing?