What's Bad For Gold Is Good For Stocks

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 |  Includes: GLD, IAU
by: Calafia Beach Pundit

As the first chart below shows, gold's brief recovery now looks more and more like a "dead cat bounce." Further weakness is likely in store, as the second chart suggests.

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Click to enlarge

As I mentioned last month, gold appears to be relinking to commodities.

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This is a big deal, as the chart above suggests. Gold had been trouncing just about everything for 10 years or so, but now things are reversing. Equities -- productive investment -- are now in favor while gold -- speculative investment -- is out of favor.