September’s inflation came in hotter than expected. The U.S. consumer price index (CPI) gained 8.2% relative to a year earlier. Moreover, economies worldwide are experiencing price rises. According to the International Monetary Fund (IMF), global inflation could rise from 4.7% in 2021 to 8.8% in 2022.
Conventionally, gold is seen as an inflation hedge as the yellow metal tends to hold its value better than other assets in the long run.
