On Monday afternoon at the Boston Marathon, there were two large explosions near the finish line, killing at least two people and injuring dozens more. These atrocities were caught on camera via the media who covering the sporting event. Initially there was rumour and speculation as to the cause or who might be responsible however it seems too early to speculate without fact. The FBI has taken over the investigation into the explosions, with social media having a notable part in the rapid response.
President Obama held a press conference and said: "We will find out who did this and hold them accountable.."
In the markets on Monday the dramatic commodity selloff continued from Friday, with Gold extending losses, as the market crashed by over 9%. The two day drop is the yellow metals worst performance in three decades, with the all-time high being set in September 2011. The rapid decent led to many long’s being squeezed and forced to settle their losing positions. The forced sellers added pace to the move, which caught many investors by surprise as the price tumbled. Gold is a favoured asset by many investors as a hedge against inflation and a haven from central bank quantitative easing.
One of the reasons behind the Gold “crash” were Friday’s comments speculating that Cyprus (and potentially Italy etc) may need to sell Gold reserves as part of its rescue deal. Disappointing Chinese data on Monday weigh on global growth, with demand from China propping up global commodity prices. The Chinese slowdown from breakneck double digit growth is regularly cited as a risk to economic stability, as the slowdown in growth will impact demand across commodities. Also the expectation that the Federal Reserve will withdraw its monetary stimulus (QE) sooner than expected, is an attributing factor.
The volatility in the commodity markets has led to the CME to raise its Gold margin, and speculation that the Shanghai Gold Exchange is also planning to increase margins.
This morning there is inflation data from the UK, with some analysts expecting 2.9/3.0% for UK CPI, which is released at 9:30 (BST).