Your Money: A higher inflationary environment is good for gold

 Your Money: A higher inflationary environment is good for gold
Maybe that’s why, after chasing higher returns and enduring big swings over the last few months, funds seem to be now reversing from cryptocurrencies like Bitcoin to gold as investors appreciate the reliability and stability of the precious metal.

In May, gold prices rose above the key psychological level of $1,900 per ounce, ending the month roughly 8% higher and turning positive for the year to date. Much of May’s action in gold was a result of evidence showing a rise in prices in the United States and the weakening of its key rivals—the 10-year Treasury yield, the Dollar Index and Bitcoin.

Rising inflation in the US
With trillions of dollars of stimulus trickling down to the real economy, accelerating vaccination rollouts and unfixed supply chains, higher inflation has become the central market-moving theme so far in 2021. In the US, Personal Consumption Expenditure jumped 3.6% in the year to April. The Consumer Price Index…

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