Dec gold edged lower but not by enough to erase a possible bottom on the chart. In spite of inflation concerns, the best chance of a rally still comes from fund short covering, likely if major moving average resistance around 262 is violated. Technically oriented traders should hold long positions with a stop at 249. None for now. Friday's down reversal wasn't enough to signal a top but the big downturn in unleaded was so we wouldn't be surprise to see a further pullback.
Nothing appears set up for today's turning point.
Sep gasoline fell sharply on liquidation tied to August product expiration. In addition, with the peak summer demand period entering its last month, the spec longs might continue to lighten up since it won't be long before stocks start to build again. Nothing appears set up for today's turning point. Friday's sharp down reversal probably signaled a top in Sep heating oil only because similar action signaled a top in unleaded gasoline. As mentioned before, distillate supplies are more than ample, and should rise further into the fall heating season.