Gold Is a Terrible Predictor of Inflation, BOE’s Vlieghe Says

Bank of England policy maker Gertjan Vlieghe warned that it’s a “terrible idea” to look at gold prices as a predictor of inflation.

Investors have piled into bullion this year, pushing the price up 30%, amid speculation that massive government spending worldwide to counter the coronavirus shock will push inflation higher.

But Vlieghe, a former Deutsche Bank AG bond strategist, told U.K. lawmakers on Wednesday that the record-high price of gold “tells you precisely nothing.”

https://www.bloomberg.com/news/articles/2020-09-02/gold-is-a-terrible-p…