AAAU - Gold: Big Difference Which Kind Of Hedge It Truly Is
It isn't inflation which is driving gold higher, at least not the current levels of inflation. According to the latest update from the Bureau of Economic Analysis, the Federal Reserve's preferred inflation calculation, the PCE Deflator, continues to significantly undershoot. Monetary policy explicitly calls for that rate to be consistent around 2%, an outcome policymakers keep saying they expect but one that never happens.
For the month of July 2019, the index increased 1.38% year-over-year. That's only slightly above June's 1.33% advance. After having achieved the inflation target for all of eight months in 2018,