Gold is climbing as bond yields rise and the dollar falls, over speculation that China is pulling back on buying US Treasuries and Japan signals it is winding down its quantitative easing program. The amount is bitcoin zerohedge twitter gross outstanding debt issued by the United States Department of the Treasury since 1790 and reported here.
But, it doesn’t include state and local debt. And, it doesn’t include the so-called unfunded liabilities of entitlement programs like Social Security and Medicare. Inflation, of course, diminishes the value of the currency and hikes gold prices, since the US dollar and gold normally move in opposite directions. Gold is seen as a hedge against inflation.
Consumer prices in the United States increased 2. 1 percent year-on-year in December of 2017 Figures came below market expectations of 2. 2 percent amid a slowdown in gasoline and fuel prices. Still, core inflation edged up to 1. 8 percent and the monthly rate increased to 0. 3 percent, the highest in eleven months. Last week was very interesting for the bond markets which are a key determinant of the US dollar and therefore gold prices.