The Fed is not pursuing inflationary policy.
The money supply is contracting.
And with it, Gold has been weak.
There is no evidence of QE3 or even accommodation. Why are they doing this? Because there has not been noticeable inflation in the public’s daily life, and when the Fed wants to increase the money supply there will be a lag that delay the perception.
I know this: the AMB chart reveals that the FED has been tightening money.
Gold will rise again when the Fed resumes increasing the adjusted monetary base.