The U.S. Bureau of Labor Statistics released its August Inflation report on Wednesday September 11th showing Annual Inflation was down from 2.9% in July to 2.5% in August. (But since we calculate it to two digits, it was actually 2.89% in July and 2.53% in August.) On a non-seasonally adjusted basis, monthly inflation in July was 0.12% and 0.08% in August. Gold Prices: Contrary to what you might expect the day after the release of the lower inflation numbers Gold rallied to $2554 by mid-afternoon. I've often said, Gold is a crisis hedge NOT an inflation hedge. This is primarily because there is no "counterparty risk" i.e., it is strictly an asset not simultaneously someone else's … [Read more...]