Gold As An Inflation Hedge? Why Is It Falling Now?

What happens when an asset’s supposed price drivers start conflicting? Take gold. Conventional wisdom deems it a vital safe haven from geopolitical instability. Conventional wisdom also deems it an inflation hedge. Today, we have war in the Middle East driving oil and natural gas prices up, fanning hot inflation fears (which we think remain off base). Yet gold is … down. What gives? Once again, gold is proving itself a volatile commodity that swings on sentiment, not reason. Read Full Article »