Editor's note: Originally published at tsi-blog.com on July 28, 2019.
[This post is an excerpt from a recent TSI commentary]
Gold tends to perform well relative to commodities in general when inflation expectations are falling. The evidence is presented below in chart form.
The first of the following charts shows the Expected CPI, which in this case is determined by subtracting the yield on the 5-year TIPS (Treasury Inflation Protected Security) from the yield on the 5-year T-Note. In effect, the chart shows the average annual "inflation" rate that the market expects the US government