CPI tomorrow is what matters the most, since many government disbursement, including social security, rely on it for either an increase or not. It is in the interest of the government to work the CPI numbers as low as possible, so you have to go to commodities to judge true inflation and gold is it. Right now, it is saying inflation is not a problem, but keep a look out tomorrow. Gold (October contract) has support at 626.50, 50 dma. A break below confirms that inflation fears are unfounded, but if we hold that, it means smart money doesn't buy it.
This entry was posted
on Tuesday, August 15, 2006 at 7:38 AM.
