Gold Underpinned By Hopes For Monetary Stimulus – RJ O'Brien

Weaker-than-expected economic data out of China has reignited ideas of potential monetary stimulus out of China. CPI data came in at a 30-month low of 1.8%, PPI fell by 2.9% on the year and industrial production came in at 9.2%. While this normally would be considered bearish for economic growth, Janet Mirasola, managing director, R.J. O'Brien & Associates, says “in this ‘topsy-turvy’ world however of reverse economics the worse the result the more chance of QE (quantitative easing) and rate reduction to artificially support global assets rather than the real underlying need for growth and demand.” Gold and industrial commodities “are underpinned by currency support and this strange wave of stimulus hope that gives traders reason to add risk,” she says. 

Source:Kitco