Capacity utilization rate April 2012 79.2% above estimates

In my previous article I pointed out how important it is to follow the capacity utilization rate to estimate the prices of gold and silver going forward. When the capacity utilization rate plummeted in 2008, we knew for sure that commodities would plunge with it. So what happened recently?

Today the capacity utilization rate for total industry for April 2012 came out at 79.2%, up from 78.4% the previous month (Chart 1). This number is the highest since July 2008 and bodes well for commodity prices, especially gold and silver (which had a very significant correction in the last months). There was a concern the previous month that capacity utilization would come down in April, but it didn't. So gold and silver prices should have significant support in the coming months.

To read the full article, just click on this link: Capacity Utilization Rate in April 2012 Pointing to Inflation.

Chart 1: Capacity Utilization Rate