Higher Highs for Gold

The behavior of gold and the SPDR Gold Shares (NYSE: GLD) recently has been fascinating. Let's notice that the GLD has continued to carve out a series of higher lows off of the 1/15 pivot low at 78.73. It has been doing this DESPITE a stronger dollar and an overbought condition. Perhaps all this good news about more government relief (read: deficit spending) is underpinning gold, as it attracts capital that is frightened by the unintended consequences of global government spending gone wild? In contrast, the climb in equities feels like short covering, while the holding power of the GLD represents the behavior indicative of a bull market.