Gold price may signal future inflation, says study

There are growing concerns that big increases in money supply worldwide will put substantial upward pressure effect on inflation. A report published on Friday says the price of gold can be a leading indicator in this regard. As money supply increases, the gold price rises, after a lag of about six months, according to the World Gold Council (WGC) study. Another WGC finding is that gold is an indicator of future velocity of money, in particular in the US. In other words, the gold pric…