Gold Is Back in Vogue With Bulls Loving Faster Inflation Again
- Prices jumped as U.S. inflation at the fastest pace since 1990
- That’s boosting demand for a hedge as Fed keeps rates low
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For much of this year, rising inflation has been bad news for gold. Now it’s giving the metal a shot in the arm.
While bullion is often bought as a way to protect wealth when consumer prices are climbing, this year’s inflation had weighed on the metal as investors bet that it would spur the Federal Reserve to scale back huge stimulus measures. But with the Fed determined to keep rates low while unemployment remains elevated, worries about out-of-control inflation are boosting gold’s allure.