Yields Vs. Gold

I'm loathe to take a long term stance on GLD, partly because the technicals are not clear and partly because the fundamentals seem overwhelmingly bullish. It's that word "seems" that is dangerous. However, here is some past action between Treasury Yields and GLD (Gold). The implication right now is modestly bearish for GLD if these charts and the relationship is still valid.

 5 year chart with 5 year Yields in green and GLD in red-clearly there's an inverse relationship.

1-day chart showing rising 5 year yields. This seems to be a new established trend, how long it lasts is anyone's guess, but unlike much of the market it is showing a healthy pattern of moving up, consolidating and moving up again .

Here's GLD

 GLD 5-day chart with a 50-bar m.a. (click the chart for a closer view)

 GLD's next resistance zone (gap resistance-some of the best support/resistance you'll find).

 GLD's 1 day 3C chart-this is currently near a leading negative divergence

Just to double check, here's MoneyStream which rarely calls out negative divergences, but tends to be quite accurate when it does.

Gold may be another "Too obvious trade" or there may be unfolding events that smart money is privy to that we won't understand for some time, however, we are watching what they are doing, we don't always know why at the moment and it's not really important. It's not about being right, it' about making and protecting money.