Gold ores price in May 2009 and PPI

Following our previous post on gold ores price, we present a new reading for the difference between the overall PPI and the index for gold ores. The reading for may is slightly below its expected level, which should be closer to the trends line.

Of course, I could check the average gold price for May before writing the previous post and find that the new index level has increased. But to make the prediction unbiased, I did not. (Actually, we did not exclude this possibility and explicitely mentioned it, as it happened before.)
So, the new reading is still below the trend line and gives additional potential to the price of gold ores to decrease in the months to come. As promise, we will follow the price up.

Figure 1. The difference between the overall PPI and the index for gold ores. The reading for May is slightly below its expected level. It gives an increasing potential of fall in the months to come.