Quote from article ""Both equities and gold are looking to monetary policy for direction." And right now, monetary policy looks like bad news for the dollar, which is supportive for gold. Gold and equities are trading off expectations for a third round of quantitative easing, which has understandably resulted in some correlation of late, said Peter Grant, senior metals analyst at USAGOLD-Centennial Precious Metals Inc. Still, "gold was actually quite resilient in the face of last week's stock losses that stemmed from some pretty significant data misses," he said. "The ongoing debt-ceiling battle, the general weak tone of the dollar and uncertainty about the [European Union] debt crisis, all conspire to underpin gold." But against such a complicated backdrop, gold investors, and investors in general, will need to be particularly wary these days. "Rules are made to be broken on Wall Street," said Mark Leibovit, chief market strategist at VRTrader.com. "You cannot assume an inverse or one-to-one relationship will always ,," http://www.marketwatch.com/story/gold-investors-need-nerves-of-steel-2011-06-10?pagenumber=2
