Equities Eclipse Gold as Inflation Hedge Amid Sticky PCE Data

Market commentary on May 20 shifted preference toward equities and balanced portfolios over gold for inflation protection amid persistent price pressures. The move follows March PCE at 3.5% headline and 3.2% core, April CPI of 3.8% YoY, and Cleveland Fed projections lifting Q2 annualized PCE to 5.77%. Early safe-haven bids for XAUUSD gave way after pieces questioned gold’s CPI correlation while highlighting SPY’s long-term resilience: down ~20% in 2022 yet up ~78% over five years. Retiree-focused advice reinforced 50/50 stock-bond mixes and delayed Social Security to outpace inflation rather than relying on metals.