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After touching a new 2012 high following comments from Federal Reserve chairman, Ben Bernanke on Monday, Toby Connor of Gold Scents details why it might be time to book some profits in gold and mining stocks.

It's been a great run over the last two months but it may be time to tighten stops on mining stocks (HUI) (GDX). You can see in the chart below that at least during this stage of the new C-wave gold (GLD) is still inversely tethered to the dollar index (UUP), as are miners.

Dollar Gold HUI Chart

Click to Enlarge

During the period from September 2011 to July 2012, the dollar was moving generally higher out of its three-year cycle low and that forced a 10-month correction in the precious metals sector. It's been my opinion that the three-year cycle in the dollar topped at that point, and should drift generally lower until the next three-year cycle low sometime in mid-2014 (with occasional counter trend rallies from time to time).

I've been expecting one more leg down in the dollar to test the February intermediate low before the first counter trend rally.

Next: Dollar Gold HUI Zoomed Daily Chart