History tells us this positive correlation, which is at its highest level in the past 3 years, will not continue. I'm expecting the dollar to continue strengthening. It's been in an overall uptrend since 2011. That means that gold is likely to lose its luster at some point. I expect that gold will continue to benefit from all the stock market jitters in the very near-term. However, when the stock market bottoms - and I expect
that'll take place sometime between later this month (at the earliest) to perhaps sometime over the summer (at the latest) - I would look for gold to underperform once again.
I have used gold personally as a trade to profit from the soaring fear in 2022. Gold tends to perform its best when the overall stock market is showing significant signs of deterioration and increasing fear levels. As those signs subside, look too for gold to underperform once again.
