1. Rising Real Yields / Hawkish Fed
If the Federal Reserve resumes or hints at tightening policy, especially due to persistent inflation or wage growth, real interest rates (nominal minus inflation) rise. That:
- Hurts gold (non-yielding asset), as opportunity cost rises.
- Compresses equity valuations, especially for growth stocks.
🡒 Watch: April/May FOMC commentary and forward rate expectations.
2. Dollar Strength Surge
A sharply stronger U.S. dollar (due to capital inflows or policy divergence globally) puts downward pressure on:
- Gold, which is dollar-denominated (making it more expensive for foreign buyers).
- Multinational equities, whose earnings suffer from FX headwinds.
🡒 If the DXY is breaking out, both gold and equities can face headwinds.
3. Geopolitical or Credit Shock (Flight to Cash)
In extreme risk-off episodes (e.g., a geopolitical escalation, sovereign debt crisis, or major credit event), you often see a dash-for-cash:
- Investors liquidate everything, including “safe” assets like gold, to raise USD.
- Equities fall on earnings and growth fears.
🡒 This is what happened in March 2020 during COVID’s onset.
4. Repricing of Growth Expectations
If the market suddenly reprices for slower global growth or even stagflation:
- Equities drop on earnings downgrades.
- Gold can also decline, especially if investors are more focused on deflationary risks than inflation hedging.
🡒 In this environment, TIPS and short-duration assets outperform
Yes, they can fall together—and in 2025, a combination of sticky inflation, a hawkish Fed, and dollar strength could be the perfect cocktail for that scenario. Watch the bond market closely; it often signals these shifts before equities or gold.
IBAFIN 
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