Surging Gold Not Sign of Inflation

| About: SPDR Gold (GLD)
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With the price of gold moving above the $1,000 mark Tuesday, some may be concerned about inflation rising right along with it.

For Jeff Rubin, analyst at Birinyi Associates since 1993, this is not the case, however.

He said in a note Tuesday:

We would first note that this is an assumption based on only one occurrence (1979 - 1980) and in fact there have been other strong moves in gold that have not been associated with inflation or financial upheaval.

For example, between 1982 and 1983, gold gained 49.4% in 26 weeks but inflation actually fell.

From 1985 to 1987, gold gained 63.8% but inflation held steady.

And between 1987 and 1991, inflation rose to 5.7% from 3.6% but gold dropped to $360 from $406.