Gold is faltering...

As discussed in previous posts last week, it is important to watch for signs that the "inflation-minded" markets are rolling over. Gold has traded $15 lower this morning and charts are beginning to look vulnerable. Crude is also showing signs of a downward turn. Last week the US $ found support. It is the unwinding of excessive speculative positions that were put in place on inflation fears that threatens to unleash the next unexpected break in the grains and other markets. Any post-report grain rally will need to be watched closely for another sales opportunity.