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Can you please write your observations for this data set, is gold a hedge for inflation?-Stock GoldCPI

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Answer #1

Yes , gold is a hedge for inflation. When the inflation rises the value of the gold also rises, because the value of the currency decreases.

We can see from the graph, that the price of the gold fluctuates less than that of the stock. We can also see that the decline in stock is always more than the decline in gold. But the increase in stock is more than the increase in gold. One reason is inflation. Whenever the inflation increases then the price of stock falls rapidly but when inflation falls the price of stock increases more than that of gold.

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