With Inflation at 3.5%, Is Now a Good Time to Buy the SPDR Gold ETF? Here's What History Says.
Gold is currently pulling back after a blistering return in 2025.
Overview
The U.S. Federal Reserve aims to keep the Consumer Price Index (CPI) measure of inflation increasing at a rate of 2% per year. Unfortunately, the CPI was tracking at a much higher annualized rate of 3.5% in June, which is why Fed Chairman Kevin Warsh is talking about hiking interest rates.
Inflation refers to a general rise in the price of goods and services, which effectively means your dollar has less purchasing power. One of the most tried-and-tested ways to preserve the value of your money is to buy hard assets like gold, which typically appreciate with inflation.
Details
The SPDR Gold Shares ETF (NYSEMKT: GLD) exchange-traded fund (ETF) tracks the returns of physical gold. It soared in value by 64% last year, but it has lost around a quarter of its peak value over the last few months.
Source
Originally published at www.fool.com.