An air attack on ISIS in Syria by allied forces caused gold to spike on
safe haven demand. Yet it was short lived as the world is now used to
this constant geopolitical angst and is more concerned with economic
news. Fed Governor Kocherlakota
intimated that inflation will remain low and that they will be cautious
about raising rates. This tone is not really a strong signal in either
direction and will still keep gold bugs at bay. Positive news out of
China as their Manufacturing Index beat estimates
at 50.50 gives an overall positive signal for the continued improvement
of the world economies. The recent upward move has not changed overall
trajectory as yet and only the PGMs will find some support on recent
news, due to their demand for catalyst in the
exhaust systems, from the automotive sector which is doing well in all
markets.
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