📈 Gold Prices vs. U.S. M2 Money Supply (1970–2025)

Since the mid-2010s, gold prices have generally tracked the U.S. M2 money supply, reflecting gold’s role as a hedge against monetary expansion. However, after 2023, gold prices surged sharply even as M2 contracted. This divergence suggests that factors beyond money supply—such as inflation concerns, geopolitical uncertainty, rising investment demand, or speculative activity—are driving gold’s recent gains.