Gold And Oil Slide

Crude Oil dropped nearly 3.5% to below $58 as OPEC members including Saudi Arabia signaled the group would probably keep output stable when it meets in March and as U.S. winter supply concerns eased.

A firm dollar sent gold and silver lower today. Gold closed down 5 dollars at 667.30 for the April contract.

Looking at the above chart, you will see both up trends are still intact. GLD actually formed an inside day today and oil just about made a 2 day low. I wouldn't be surprised if oil and gold retraced one third to 50% of their recent rally.

Over the weekend I posted a few comments that the commercial traders were buying crude oil for the past few weeks even as prices were moving higher which is unusual. With a seasonal rally due to kick off any day now and commercial activity on the long side, I have to view all dips as a buying opportunity.