Gold and Silver Volatility at Decade Lows

Authored by Simon White, Bloomberg macro strategist, Inflation is back on the radar this week after yesterday's release of PCE in the US. It showed a modest fall from the prior month in the headline print (but under the surface the picture was more worrying), lending credence to the bigger picture signal of inflation pressures building again.

Emblematic of how unpriced assets are for this likelihood, volatility in gold and silver and other metals is near decade lows. Given how recently inflation was at generational highs, it is remarkable how complacent…