Precious metals and related mining stocks have been under a historic,
soul-crushing selloff in recent weeks, as investors worry if the
Federal Reserve — on rising odds of interest rate liftoff in December —
is heading into a policy mistake with inflation still below target.
Inflation just isn’t a clear and present threat: Producer price inflation is cratering, dropping at a 1.6 percent annual rate as of October on a persistent drop in food prices.
On Monday, wholesale gasoline futures tested down to $1.20 a gallon —
a level not seen since early 2009. Copper and crude oil are similarly
weak. Other measures from China factory gate prices to U.S import prices
all tell the same story. (more)
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