Today’s AM fix was USD 1,594.50, EUR 1,293.29 and
GBP 1,026 per ounce. Monday’s AM fix was USD 1,581, EUR 1,287.15 and
GBP 1,020.66 per ounce.
Gold closed at $1,587.80/oz
in New York yesterday after having hit an intraday high of $1,592.80/oz.
Gold’s gain on the day was $4/oz, or 0.25%.
Silver closed at $27.34/oz, with a $0.23/oz or a 0.85% gain.
Gold has been trading up in Asian and Europe this morning,
and is currently at $1,595.83/oz. Silver is trading at $27.49/oz.
WGC – Gold as a Tactical Inflation Hedge and
Long-Term Strategic Asset
The last of the World Gold Council reports examined this week deals with the
role of gold as an inflation hedge and a long-term strategic asset. The
report says that traditional assets like fixed-income bonds and equities tend
to not perform well during periods of high inflation. Gold, on the other
hand, has been used as an inflation hedge for centuries. It is shown that
gold’s performance has been best in the years when inflation in the US
has been the highest.
The report concludes that gold, as other traditional
inflation hedges like other commodities, property, and inflation-linked
bonds, is likely to outperform mainstream financial assets when inflation is
high. Strategically, gold is recommended as a portfolio diversifier.
The full World Gold Council report is available here.
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