According to data released by the US Bureau of Labor Statistics on Tuesday (March 12), the US Urban Consumer Price Index (CPI-U) rose 1.52% year-on-year, much lower than the average of 3.76% since the end of the Second World War, but above the 10-year moving average of 1.58%.
The chart below shows US monthly inflation data from 1872 to the present. The first 70 years of data oscillated between the extremes of inflation and deflation.
The chart below shows the impact of inflation on the purchasing power of the US dollar for more than 140 years. It can be seen that the US dollar has depreciated sharply.
Gold has long been seen as a hedge against inflation and statutorycurrencyDepreciation tool. Gold has performed strongly so far this year. At the same time, global central banks are hoarding gold in record amounts, which is a big boost to the rise in gold prices.
In 2018, the financial market was a year of unresolved. For the first time in 117 years, 93% of assets fell at the end of the calendar year, and the dollar performed better than global stocks and commodities. The last time the US dollar outperformed the rest of the world in asset classes was in 1969, when the dollar was decoupled from gold not long ago.
In fact, David Moadel said, no one expects this year to be the same as last year, especially in the first quarter when stocks and bonds are performing well. To say anything, the dollar is expected to resume its typical long-term downgrade model. In the past half century, the purchasing power of the dollar has steadily declined. Governments and central banks around the world are very aware of this, and in response, they have been buying the ultimate "anti-dollar" asset - gold.
In a report that Huili Futures said that in the context of the global economic slowdown in 2019, the attractiveness of gold will be at a glance.
OANDA Advanced MarketAnalystJeffrey Halley believes that from a structural point of view, gold prices are expected to rise in the coming months; as the world economy continues to slow down and uncertainty increases, gold will be supported.
Obviously, the whole world is turning to gold, and cautious investors may consider doing the same thing.
(Article source: Gold headline)