Gold's role as the primary inflation hedge has been replaced by other assets, as investors bet on raw commodities to outperform during a reflationary environment, said Phil Streible, chief market strategist of Blue Line Futures.
"Typically, [gold and inflation expectation] do correlate together because gold has historically been a great asset class for inflation," Streible said. "However, when all asset classes, and in specifically commodities, basically went to unprecedented lower levels, things like lumber, crude oil are going negative, everything from your grain markets, copper, everything got smashed one year ago today...the price of those commodities have really taken off on the upside."