As inflation moves upward, gold, the longstanding inflation hedge, has begun making a move in recent months, up nearly 10% since the beginning of April. Two additional macro developments have taken place during the
same period–a 3% decline in DXY, the USD index, and a 20bps decline in the US real 10-yr government bond yield. Gold could continue to move up if the inflation march continues, especially if dollar weakness persists as well.