https://www.barrons.com/articles/gold-is-cheap-inflation-is-comin...

https://www.barrons.com/articles/go...-you-do-the-math-1537582480?mod=bol-social-tw

“Virtually every government in the world is trying to promote inflation partly because there is so much sovereign debt,” Trauner says. When there is so much debt, he contends, governments have three choices: default, restructure, or inflate the currency.

“Politicians, when given the chance, will choose the latter.”
Naysayers point to higher interest rates as a negative for gold because it increases the allure of holding cash. But gold had one of its best decades during the inflationary 1970s, when rates soared.
One catalyst that could change investor sentiment on gold is a decline in the U.S. dollar.

“Gold is the anti-dollar,” says Pierre Lassonde, the chairman and a co-founder of Franco-Nevada(FNV), a gold and mining royalty company with an $12 billion stock market value. “When the dollar is strong, there is no need for gold. But when the dollar is weak, people go back to gold.”
Historically, gold and the dollar have a negative correlation of 80% to 85%. The dollar has been supported by expectations that the Federal Reserve will keep tightening and lift its benchmark, the federal-funds rate, to 2.5%-3%, from the current range of 1.75% to 2% by the end of 2019.