Gold is selling off because traders now believe the Federal Reserve will not be as easy as once expected. While Fed policy is more likely to be much easier than expected, if traders are correct this development would be far more bearish for the stock market than it is for the gold market.
The lack of conviction gold stock investors have in the trade really is amazing. Despite the most positive fundamentals ever for gold, fear is far more pervasive than greed. Imagine what the market will look like when larger gold stock investors actually turn bullish on gold.
Related trading instruments: SPDR Gold Trust ETF (GLD),Market Vectors Gold Miners ETF (GDX)