Mixed Economic Indicators Released During the Week
• Gold prices on Monday showed the largest one-day drop in 30 years. With gold prices plummeting, some observers are questioning the path of monetary policy and inflation. We do not think the market believes a near-term change in monetary policy is looming.
• The latest reading on housing starts showed headline starts surged to a 1.04-million unit pace, the highest level since June 2008. However, much of the increase was due to the volatile multifamily component, which suggests a payback is in order. Single-family units fell on the month.