Economics

Gold Is a Terrible Predictor of Inflation, BOE’s Vlieghe Says

A worker seals a 12.5 kilogram gold ingot into a protective packet at the Uralelectromed Copper Refinery, operated by Ural Mining and Metallurgical Co. (UMMC), in Verkhnyaya Pyshma, Russia, on Thursday, July 30, 2020. Gold surged to a fresh record Friday fueled by a weaker dollar and low interest rates. Silver headed for its best month since 1979.Photographer: Andrey Rudakov/Bloomberg

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By Lucy Meakin

September 2, 2020 at 2:47 PM UTC

This article is for subscribers only.

Bank of England policy maker Gertjan Vlieghe warned that it’s a “terrible idea” to look at gold prices as a predictor of inflation.

Investors have piled into bullion this year, pushing the price up 30%, amid speculation that massive government spending worldwide to counter the coronavirus shock will push inflation higher.