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A worker oversees gold smelting operations. The market is now paying about $180 (U.S.) an ounce of reserves to purchase assets – only a little more than half what it was paying in 2011.
A worker oversees gold smelting operations. The market is now paying about $180 (U.S.) an ounce of reserves to purchase assets – only a little more than half what it was paying in 2011.
(Mathieu Dupuis/Osisko Mining)

Why gold's rise is getting ahead of inflation

Gold is – finally – showing some signs of life. Despite a modest decline on Friday, the metal that feasts on bad news has enjoyed one of its best weeks in months, courtesy of turmoil in Iraq and Ukraine and early signs of a pick-up in inflation in the U.S. and Canada.

It’s almost enough to make gold bugs think back to the glory days of 2011, when the yellow metal roared to record highs amid inflation worries and fears of a euro zone break-up.