Gold and Oil

We're seeing a pullback in gold this morning. The big driver is crude oil, which seems determined to go back and test recent support around $60. Many investors buy gold as an inflation hedge, therefore, when crude goes down, they sell gold.

I believe this is a short-term phenomenon. It may even be a great buying opportunity. With Indian jewelry traders coming back on the buy side, gold's days under $600 are probably numbered.

Check out my new gold and energy blog at MoneyAndMarkets.com