Finance

Investing in Gold. Gold futures prices are currently 36% higher compared to the price a year ago, cnbc reported. The article said: Gold futures prices are also up about 10% year-to-date and currently 36% higher compared to the price a year ago.  What is behind the rising prices of gold? Two reasons stand out: 1. The rising global inflation rate. It’s a common practice by many investors to buy gold and use it as a good inflation hedge. 2. U.S. sanctions on Russia. U.S. sanctions on Russia date back to 2022. These sanctions have been the boost for higher returns on gold for at least a year now. Would global headline inflation continue to rise or would it fall in 2025?   IMF said that it is expected to decline. The bank said: Global headline inflation is expected to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies. Would US lift sanctions on Russia? U.S. President...

  What Is Inflation? Inflation reduces the purchasing power of money (purchasing power, the quantity of goods bought by an amount of money).  Inflation reduces the purchasing power of money in a growing economy by triggering rising prices of consumer goods and services. `A slow and steady rising of prices caused by an inflation rate of at about 2% is okay. But when the rate rises faster, sometimes to double digits, then it can have a negative impact on personal financial management. For instance, as a consumer, you would be time consuming to compare and determine best prices to get goods and services at a given moment. How is inflation measured? Inflation is measured by using the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCI) tools.  The Consumer Price Index tracks prices for individual goods and services which households are buying.  The Personal Consumption Expenditures, PCE, tracks changes in prices of consumer goods and services which ...