The gold price spiked higher Friday morning, climbing 0.6% to $1,528 per ounce. The price of gold rallied after the PCE deflator, the Fed’s preferred price measure, showed inflation of a mere 1% in the month of April versus a year earlier. Gold and silver prices continue to be supported by a macro-economic backdrop that shows muted inflation figures when food and energy are stripped out. Notwithstanding the importance of driving and eating for the American public, the Fed is determined to largely omit these items from their analysis. This leads to easier money, negative real interest rates, and therefore, higher gold prices.
The gold price spiked higher Friday morning, climbing 0.6% to $1,528 per ounce. The price of gold rallied after the PCE deflator, the Fed’s preferred price measure, showed inflation of a mere 1% in the month of April versus a year earlier. Gold and silver prices continue to be supported by a macro-economic backdrop that shows muted inflation figures when food and energy are stripped out. Notwithstanding the importance of driving and eating for the American public, the Fed is determined to largely omit these items from their analysis. This leads to easier money, negative real interest rates, and therefore, higher gold prices.
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