I've just now come across this research, which I found surprising (this was after I posted above that tonight's EUR CPI could heavily influence the price of Gold!).
Common knowledge would have us believe that there is a strong positive correlation, not what is claimed here. Does anybody have any research to either support or contradict this?
"Gold actually is an unreliable inflation indicator, according to recent academic research. Economists Jonathan Batten of Australia’s Monash University, Cetin Ciner of the University of North Carolina at Wilmington and Brian Lucey of Trinity College, Dublin studied the relationship between gold and inflation since 1985 and concluded “a stable link between these variables does not exist.” Likewise, Andrew Ang of Columbia University wrote in 2012 that gold has only a 1 percent correlation with inflation. “Gold has not been an inflation hedge over the last 130 years,” he wrote, adding that gold prices demonstrate a strong tendency to revert to their long-term average."
http://www.moneynews.com/Markets/Rep...1/14/id/536673