Despite a seasonal uptick in unemployment in Brazil, skilled labor remains scarce enough to force employers to pay more to compete for talent. This, in turn, may fuel new inflationary pressure despite the government’s best intentions.
Emerging markets rebounded somewhat on Friday but still closed down for the week on continued fears of a slowdown in China and lower than expected PMI numbers out of Europe.
Bullion-hungry Asian consumers are often touted as the fundamental support for gold prices. But India’s demand for gold has weakened as the combination of high inflation and a weakening rupee sap the country’s collective buying power. China seems to be stepping in to fill the gap.