Futures and Inflation

[micahnelson]

Just a question for the guru's here. What causes commodity and hard asset prices to decline when there has been a rate cut and signs of inflation? What is keeping gold and oil low when the news is worse than it was a few months ago?

[fsk]

Inflation is not uniform. When new money is introduced into the economy, it comes in clumps.

Looking at a long-term view, all asset prices go up at the inflation rate. In the short-term, there are bubbles inflating and popping.