The Disconnect Between Gold, Inflation Again Manifests as Inflation Data Is Published
Although gold has historically served as an inflation hedge, there has been a disconnect between the precious metal and inflation in recent years. Several years of crisis after crisis caused inflation levels to rise globally, but gold prices failed to rise in turn, frustrating many investors who would have used gold to preserve the value of their portfolios. The most recent round of U.S. inflation data brought this disconnect to the fore again when gold prices failed to rise despite hotter-than-expected inflation levels. Gold’s failure to rise in value alongside rising inflation levels is primarily due to action by the…