Gold price may signal future inflation, says study

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Changes in the gold price lag global money-supply growth by six months, meaning gold can be taken as an indicator of future inflation, according to the World Gold Council.

There are growing concerns that big increases in money supply worldwide will put substantial upward pressure effect on inflation. A report published on Friday says the price of gold can be a leading indicator in this regard.

As money supply increases, the gold price rises, after a lag of about six months, according to the World Gold Council (WGC) study. Another WGC finding is that gold is an indicator of future velocity of money, in ...

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Asian Investor Magazine
AsianInvestor
March 2010