Stone & McCarthy Research Associates' technical

Stone & McCarthy Research Associates' technical
analyst Michael Sacchitello said that "even though gold does not carry
the same weight as it used to in Fed policymaking," the gold versus
year-on-year CPI chart "certainly demands the attention of those who
make investment decisions based on the direction of inflation. In
particular, on the right hand side of this chart, it is apparent that
the end of the 20-year secular bear market in gold was a leading
indicator for the newest trend in higher Core CPI readings." Sacchitello
also added that "it is a safer bet to play gold out, and to expect a
decline to US$550/ounce in the months ahead, which is the area of its
200-day moving average. (Those clients who may have missed the call can
soon dial into the replay at 1-866-442-2093; the call leader code
is "Mike Sacchitello" and Passcode "Market News.")