Oil and Copper (not Gold) track inflation better

Gold Bugs still think that owning Gold will provide them an inflation hedge.

The chart below combines the Gold price (in USD) with the U.S. Inflation Rate together.

In addition, the lower study plots the ‘correlation coefficient’. A reading of 1 signals perfect correlation. The highlighted rectangle shows a few moments when the reading is above 0.5 but never does it reach 1.

Gold isn’t really that wonderfully correlated.

The Copper and Oil price are better….

August 19, 2023

by Rob Zdravevski

rob@karriasset.com.au