In view of a strong US dollar we should expect gold to move in oppposite direction from stocks and last week prior to the G20 meeting expectations were that some type of agreement could help support the US dollar going forward if the meeting were diminish expectations about the size of QE2 while China might make some more concessions on the revaluation of the yuan .

But as we know now the G20 meeting came out flat and nothing of real meaning came out about the end of the actual cureency/trade war that's brewing .

So while QE2 will inject more money in the US economy and support the stock market in the meantime , it will also weaken the US dollar in the long term , doing so gold will remain the long term refuge that's it been ever since this crisis came in sight .

That's why we should expect gold and stocks to apprecaite in tandem going forward .

Japan already warned it would remain ready to support the Us dollar against the yen and other countries of the Brick will no doubt react when the Us dollar will weaken in order to keep their currency competitive in order to protect their exports , either by buying US dollar on the dip or by restricting further money flow into their countries .

Down the road gold should keep rising along with the weakening of US dollar and fears of the consequences of this currency war on world growth .

Tec