Why Gold Is Rallying While CPI Falls

In this episode of Inflation Explained, Lucas and Luna examine the puzzling rally in gold prices despite falling CPI and core inflation in June 2026. With gold hovering near $4,150 an ounce and silver surging over 7% in five days, the hosts drill into what's driving the divergence: falling real yields, central bank buying, and geopolitical uncertainty. They discuss the disconnect between headline CPI dropping to 332.6 while the 10-year breakeven inflation rate ticked up to 2.26%, and what that means for investors watching the Fed. Lucas breaks down the historical relationship between inflation and gold, and why the current environment—flat Fed funds rate at 3.63%, falling CPI but rising breakevens—creates a textbook setup for precious metals. Luna pushes back on whether gold is a reliable inflation hedge anymore, and they explore whether the rally is more about rate-cut expectations than actual inflation. A sharp, data-driven conversation for anyone wondering why their grocery bill feels disconnected from both CPI and the commodities market. #Gold #CPI #Inflation #PreciousMetals #CentralBankBuying #RealYields #Fed #BreakevenInflation #Silver #Commodities #Economics #Investing #GoldRally #RateCuts #Geopolitics #FexingoBusiness #BusinessPodcast #InflationExplained Keep every episode free: buymeacoffee.com/fexingo