Both the equity index e-SPH and Spot Gold continue to track higher since early Feb, which was not the case during Jan, and certainly was not the case during all of 2013.
What has altered the relationship from inverse and indirect, to direct?
Are both markets reflecting anticipated resurgence in US and global growth and inflationary pressures?
Or are both markets reflecting anticipation of anemic growth that will require the Fed and other Central Banks to flood the monetary system with even more stimulus in the upcoming months?
Ironically, both scenarios can be construed as bullish for the e-SPH and for GOLD .
Even so, it is the equity indices that should reach upside exhaustion at some point well ahead of GOLD within either of the above-considered scenarios.