Cite This Comparison
"Gold vs Nvidia (XAU vs NVDA): Returns, Risk & Volatility (2025)." Gale Finance, December 31, 2025. https://www.gale.finance/compare/xau-vs-nvda-2025 Free to use with attribution. Please link back to this page or gale.finance.
Analysis period: 2025-01-01 to 2025-12-31
Relative Performance of XAU vs NVDA (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: XAU delivered a +62.5% total return, while NVDA returned +34.9% over the same period. XAU outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): XAU had a higher Sharpe (2.34 vs 0.77), indicating better risk-adjusted performance.
- Volatility (Annualized): NVDA was more volatile, with 49.6% annualized volatility, versus 19.3% for XAU.
- Maximum Drawdown: XAU's maximum drawdown was -9.7%, while NVDA experienced a deeper drawdown of -36.9%.
Gold vs Nvidia Correlation
Gold and Nvidia were negatively correlated in 2025. With a negative correlation of -0.09, these assets tended to move in opposite directions, potentially offering strong diversification benefits.
For portfolio construction, this negative correlation suggests that combining XAU and NVDA could significantly reduce portfolio variance through offsetting movements.
| Metric | Metric | Value |
|---|---|---|
| Current (30-day) | 0.08 | |
| Average (full period) | -0.09 | |
| Minimum | -0.66 | |
| Maximum | 0.46 |
Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.
Investment Comparison
If you invested $10,000 in each asset on January 1, 2025:
Difference: $2,759.648 (XAU ahead)
Gold and Nvidia: Risk Analysis
Gold experienced its maximum drawdown of -9.7% from 2025-10-20 to 2025-11-04. It has not yet recovered to its previous peak.
Nvidia experienced its maximum drawdown of -36.9% from 2025-01-06 to 2025-04-04. It has not yet recovered to its previous peak.
Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.
Sharpe Ratio of XAU and NVDA
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. XAU had a higher Sharpe (2.34 vs 0.77), indicating better risk-adjusted performance.
A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).
Sortino Ratio of XAU and NVDA
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. XAU had better downside-adjusted returns.
A higher Sortino is better. It's particularly useful for assets with asymmetric volatility (big gains, smaller losses). Downside volatility: XAU 13.9% vs NVDA 37.9%. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).
Full Comparison of Gold vs. Nvidia (2025)
| Metric | XAU | NVDA |
|---|---|---|
| Total Return | +62.5% | +34.9% |
| Annualized Volatility | 19.3% | 49.6% |
| Sharpe Ratio | 2.34 | 0.77 |
| Sortino Ratio | 3.26 | 1.01 |
| Max Drawdown | -9.7% | -36.9% |
| Avg Correlation to S&P 500 | N/A | N/A |
Gold vs Nvidia: Frequently Asked Questions
Which had higher volatility: XAU or NVDA?
NVDA showed higher volatility at 49.6% annualized, compared to 19.3% for XAU During 2025. Higher volatility meant larger price swings in both directions.
Did XAU provide diversification when held with NVDA?
XAU and NVDA were negatively correlated in 2025, with an average correlation of -0.09. This negative correlation suggested strong diversification benefits through offsetting movements.
Which had better risk-adjusted returns: XAU or NVDA?
XAU showed better risk-adjusted performance with a Sharpe ratio of 2.34 versus NVDA's 0.77 During 2025.
Could XAU and NVDA have been combined in a portfolio?
Yes, though allocation sizing mattered. Their negative correlation could have significantly reduced portfolio variance through offsetting movements. NVDA's higher volatility (49.6%) meant even small allocations can materially impact overall portfolio risk.