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.”
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