Gold has long been regarded as a reliable wealth protection tool, so it is often favored by investors in times of economic turmoil. However, observing the trend of gold prices shows that simply as an inflation hedging tool cannot accurately summarize all the functions of gold.To understand how gold prices change with inflation, we first need to recognize the multiple roles played by gold assets and how various economic policies, especially the Fed's interest rate policy, affect the value of gold.Gold's Response to Major Economic ForcesGold is essentially an asset that responds to the balance of supply and demand forces just like real estate or stocks. Markets often tend to read inflation negatively in terms of consumers paying higher prices. However, inflation is not only manifested in con