After trading in a narrowing range for quite a few months (GLD; bottom chart above), gold broke sharply to the upside. That occurred at the same time that the U.S. dollar gapped lower and made fresh lows against major currencies (UUP; top chart). Both of these events correspond to when stocks began their run to bull market highs.
Gold is hovering around its February highs. The dollar is hovering around its lows, and stocks are hovering near their highs. All, so far, are accepting value at new levels following breakout moves, which suggests no reversal of the intermarket trade that has been strong for stocks and commodities, weak for the dollar.
More on intermarket themes can be found here.
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