Both Gemini and ChatGPT disagree with you.Will the gold price go...

Both Gemini and ChatGPT disagree with you.

Will the gold price go up or down if inflation is expected?

The price of gold often reacts positively to inflation expectations, so it is more likely to go up if inflation is expected. Here's why: Inflation Hedge: Gold is traditionally seen as a store of value, especially during times of rising inflation. When the purchasing power of fiat currencies decreases, investors often turn to gold to preserve wealth. Weakening Currency: Inflation can erode the value of a currency. As a result, gold, priced in that currency, may increase in price to reflect the currency's diminished purchasing power. Safe-Haven Demand: When inflation rises, it can signal economic instability. This uncertainty often drives investors to safe-haven assets like gold.