The latest CPI numbers are out and we see that yoy inflation rates are now at 2%. I expect inflation to go higher in the future, because I see that the capacity utilization rate for May 2014 has been up to 79.1 for the total industry.
For mining, the capacity utilization rate even goes to 91, the highest in decades. I guess the mining industry is working at near full capacity and that's good for commodities to go higher.
Remember, when the CPI goes up and bond yields drop, gold goes higher. And that's exactly what is happening now. Bond yields are lower and CPI is higher.