Gold is off to a good start this year and holding every little pullback. My major concern is the XAU. Could Gold stage a rally if equities falter? The optimal situation in precious metals is always the stock leading the commodity. If the equity market turns, will mining drop in sympathy? If they do it would be mighty hard for Gold to advance for the next month to 2 months. The Greenback has a very aggressive Fibonacci relationship coming off the last Fed meeting spike down. The more aggressive stance has the Greenback going for a 161AA which would take it near 82.20 because AA is of larger degree then A which comes off the secondary low. If that technical scenario does materialize you will likely see a bearish reaction in equities perhaps even tomorrow.
It’s been well over a year since the stock market had a correction that provided any degree of pain. The problem is the skittish bears who each time take their foot off accelerator with minimal profits because they are afraid to get burned like they did in 2011.