Why gold may no longer be the ideal investment for inflation hedging

<p>Deutsche Bank with a brief note on gold:</p><ul><li>investors are pricing in larger rate cuts for 2024 has increased the relative appeal of something that does not pay any interest</li><li>chart shows the real price of Gold back to 1790, i.e. adjusting for inflation</li><li>Although we have hit all time highs in nominal terms, we are over 20% below the inflation-adjusted peak seen in 1980.
</li><li>Although gold might seem like it’s a good inflation hedge, it only keeps pace with inflation if you buy it at the correct time. In reality, it trails traditional assets over almost all medium to long-term time periods.</li><li>So you can be a long-run inflationist but still be a bit underwhelmed by Gold as an investment. Maybe Bitcoin has diluted its allure but that’s a story for another day.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.