| A big spike in gold prices and continued weakness in oil is sending warning signs about the health of the global economy. As China reported Tuesday its consumer price index rose only 1.4% last month -- the slowest pace in five years -- global deflation fears are mounting. In Greece, a snap election is causing turmoil in the Greek bond market as they try to negotiate their debt financing and independence away from its European bailout strictures.
OPEC is reporting the demand for its oil will be at the lowest level in 12 years. So if deflation is the fear, than the spike in gold yesterday is very troubling. Safe haven buying in US bonds and metals signal fears that the globe is on the verge of a downward deflationary spiral...............................................Full Article: Source
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