My own personal belief of the recent correlation of gold to the equity markets is that gold purchases are being leveraged. When equity markets are doing well, leverage on, when equity markets are doing poorly, leverage off. Coupled with the basing/oversold levels of gold, a gradual move back into gold cannot be discounted.

Further, I can see that the 20d trend line on GLD has moved nearly horizontal, from a downward trend, and this indicates a lack of continued selling or the beginning of stealthy buying. In fact, if you look closely, GLD EV actually crossed ABOVE the 20d trend line, which is bullish for gold in general.

Finally, we can see that GLD is making higher lows, so this portends (but we have not realized) higher highs.

Time will tell.

Regards,

pgd