Excerpts from the Coffin Brother's recent article and link follows:

All of this is another way of saying gold is trading like a currency which means its trading on its own against all currencies. There have been a number of recent sessions where gold had strong upward moves in the face of falling stock markets and a surging dollar. This is quite different from the pattern two years ago when gold was falling 30% as markets panicked and the Dollar surged. Currency trades never happen isolation; you are always selling one currency to buy another. In the past month we think much of the new money entering the gold market is coming out of the Euro which has been crashing hard.

This is different from straight “fear buying” and has the potential to be more long lasting and fundamental in its aspect. Those that have expected gold to falter whenever the markets showed some strength lately have been disappointed.

Gold’s trading pattern has changed several times in the past few years and it can certainly change again. Nonetheless, the market now seems set up for a challenge of last year’s all time high which bodes well for gold stocks.

http://www.kitco.com/ind/Coffin/coffin_may182010.html