Gold inflation relationship
Theoretically, if gold is considered an international currency, an increase in expected inflation leads to a reduction of the anticipated purchasing power, which It is an inverse relationship. As the money supply is increased, the price of gold will rise. Typically, investors use gold, or other commodities, as a “hedge” or 6 May 2019 Strong economy gives rise to inflation and gold is used as a hedge The inverse relationship is because firstly, a falling dollar increases the