Gold is an asset in which the value is basically the best hedge against any inflation and currencies, especially the USD. For the last 2 years Gold has been in a bull market, breaking record highs and pushing new market barriers. Gold will continue to increase in value, as long as central banks around the world continue to print money. Plus as China’s purchasing power increases, the demand for Gold will increase substantially. Even the Chinese government are recommending to its citizens to buy gold.
The correlation between the stock market and the price of gold is difficult to map out. However, normally when the US financial markets take a dive like in 2008, a lot of people flock and turn to Gold as a safe haven. The devaluation of the USD, will continue to make Gold the best hedge against any inflation. One of the best tools to compare Gold prices is the US Dollar index. There tends to be a strong correlation and pattern.
The US will remain a very weak economy for some time, unemployment will continue to hover around 10% and GDP will be artificially boosted with printed money and consumption. The large investment banks are also now obtaining cheap cash at the Fed (borrowing at 1%) and purchasing huge amounts of commodities especially gold.
So you can be certain Gold will continue to rise over time until the market finally starts to clear out the massive amount of malinvestment which has occurred during the last decade.