Inflation worries boost the gold price

What is inflation? Rising prices, says the cartoon eagle on the US Federal Reserve's website. Yet gold investors prefer to follow another measure of inflation - and that's why gold's been hitting multi-month highs.

What is inflation? On the Federal Reserve's website, a cartoon eagle explains to children that inflation is 'the general price of goods and services rising'. And the eagle wouldn't lie to your kids, would it? Well, gold investors have been following another inflation measure - and the classic 'inflation hedge' has been hitting multi-month highs.

Remember when soaring oil prices threatened to push inflation higher? Jean Claude Trichet at the European Central Bank warned again last week that rising energy prices risk pushing wages higher, leading into an 'inflationary spiral'.

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Adrian has written all things gold related from if it’s worth buying, what the real price of gold should be and what’s the point of gold for MoneyWeek. He has also written for other leading money titles on his gold expertise including Business Insider, Forbes, City A.M, Yahoo Finance and What Investment Magazine. Now Adrian is head of the research desk at BullionVault, a physical market for gold and silver for private investors online.