Thanks to the biggest increase in consumer prices in three years, due to higher gasoline prices (and new seven-month highs in crude oil), and thus a greater likelihood of a Fed rate hike next month, stock prices swooned. Asian stocks had been mostly higher, and Britain's FTSE index was up for the third day in a row, though German and French markets were lower. Overall, the Global Dow lost about half a percent.
But in the US, stock prices tumbled and precious metals prices rose. Near the close, the Dow is down more than 200 points, with other indices all down over 1% on the day as well.
Gold is up $5/oz. on increased demand, partly due to the perception that inflation may be around the corner after all, and the Fed may well be behind the curve on fighting it. Silver and platinum are up modestly, while the mining shares are bucking the ... Log in or subscribe to continue reading.