How does inflation affect gold prices?

Inflation can affect gold prices in a few ways. Firstly, as inflation increases, the value of the currency decreases, which can make gold more attractive as a store of value. This can lead to an increase in demand for gold, which can drive up its price. Additionally, gold is often used as a hedge against inflation, so investors may turn to gold as a safe haven during times of high inflation. Finally, gold mining companies may see increased costs due to inflation, which could lead to higher prices for gold.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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