Many of the investors we talk to feel that gold’s performance should be much stronger considering multi-decade high inflation across the world. Yet, what may not be evident to everyone is that gold has outperformed most major assets so far in 2022 (Chart 1). In fact, gold has done much better than inflation-linked bonds both in the US and elsewhere. And we believe that gold’s performance so far this year reflects the behaviour of its underlying drivers. {chart} Let us expand. Gold is generally driven by four key drivers: economic expansion; risk and uncertainty; opportunity cost; and momentum. In 2022, gold has been ... (full story)