Any surprises to the downside on this data are likely to hammer the life out of the recent rally and put a major damper on the unbridled enthusiasm seen in recent weeks. Market sentiment has definitely shifted to the optimistic side, but this report has the potential to rain on that parade. Fortunately, subscribers to The Sovereign Strategist have been taking advantage of that. But inflation is a possible consideration. Amid low interest rates the money supply has been shooting higher.
More money chasing after fewer goods IS inflation.
And with the economy slowing, there are likely fewer goods. Not to mention that the Labor Dept. reported the largest rise in wages since the first quarter of 2000. That translates into the possibility of wage inflation. Either case is bad for the economy and good for gold. Whatever is behind the move, you can't argue with the recent strength in the stocks of the major gold miners.