Don't Ignore This Chart!

Gold and Bonds are Moving in Tandem

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The Gold SPDR (GLD) and the 20+ YR T-Bond ETF (TLT) are both having good years with GLD up around 10% year-to-date and TLT up around 7%. As the chart below shows, these two are positively correlated over the past 12 months. The indicator window shows the 63-day Correlation Coefficient (TLT, GLD) in positive territory for the entire chart. 63 days is around three months or a quarter. Chartists looking for more sensitivity may try a 20-day Correlation Coefficient. This positive relationship is visible today with both up sharply in early trading. In addition to the greenback, chartists looking for clues on gold should also watch the bond market. 

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Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
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Announcement from the Author

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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