Gold's Complicated Relationship with Inflation: Insights from CPM Group's Jeffrey Christian
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Featuring views and opinions written by market professionals, not staff journalists.
In today's video, Jeffrey Christian of CPM Group analyzes US inflation data following the release of the January 2023 US CPI report. While inflation remains a concern, it has begun to moderate and decelerate.
Jeff also talks about the connection between gold and inflation. He points out that, while inflation is a factor in gold and silver prices, it is not the only one. Since 1970, the correlation between gold prices and US consumer inflation has been 9%, but it was negative 4% between 1990 and 2021 as gold prices rose sharply in the absence of inflation.
While many people overestimate the impact of inflation on gold prices, it is only one of many factors that influence gold prices.