Commodities
U.S. Quantitative Easing Fuels Gold Price Rally
The recent gold price rally has been fueled by U.S. quantitative easing, according to Charlie Morris, chief investment officer and founder of ByteTree.
Morris noted that the U.S. government is effectively running several large-scale quantitative easing programs at once, which has lifted gold prices.
He highlighted that U.S. public debt recently reached $40 trillion, with annual growth accelerating from 3.7% in the 1990s to 8.6% since then.
Morris observed that the global above-ground gold stock has matched total U.S. debt over the past century, and because gold supply expands only about 2% per year, the price of gold has had to absorb the difference.