Fed's Favorite Inflation Signal Surges At Fastest Pace In 30 Years As Spending, Income Rise

Gold/Silver: 'A Perfect and Just Measure'

Gold last traded at $1,814 an ounce. Silver at $25.46 an ounce.

NEWS SUMMARY: Precious metal prices rose Monday as downbeat economic data weakened the dollar. U.S. stocks churned near the flatline as investors digested earnings and a potential infrastructure deal.

Zero Hedge--"Following May's weaker than expected data on Americans' income and spending, analysts expected more weakness in income and a small bounce in spending in June, however both saw improvement with Personal Incomes rising 0.1% MoM (-0.3% exp) and Personal Spending up 1.0% MoM (+0.7% exp).

On the income side, private wages are up 11.5% YoY while government workers' wages are rising at a record 8.1% YoY.

All of which means the savings rate tumbled (to 9.4%, the lowest since Feb 20202, pre-COVID)

Remember when the world's prognosticators crowed of the pent-up demand coming any minute from the $2.5 trillion in excess savings... well that number is now down to just $1.7 trillion (almost back to $1.3 trillion 'norms).

Finally, and perhaps most importantly, The Fed's favorite inflation indicator - PCE Core Deflator - rose to +3.5% YoY (vs 3.4% in May), the highest since July 1991. This was slightly lower than expected (if that is any silver lining) but still doesn't look very transitory."