Gold tends to be inflation related, and there's concern about the specter of rising costs now. |
The question is how far does it go from here. Certainly the environment is conducive to strength, because the global economic fundamentals are good. |
There is still some volatility in global metal prices which is a cause of worry for the resource sector. |
Those resources stocks were starting to look stretched after a really good year last year, so all it takes is a drop in commodities across the board for them to come off. Some stocks will benefit, though, particularly the manufacturers as their costs go down. |