Gold Caught Between Rates and Inflation Crushes Volatility

For all the talk of faster inflation, gold traders are pricing in a relatively calm market.

Wagers on volatility in the precious metal are near a two-year low, diverging from a gauge of inflation bets by the most since September 2014. With the Federal Reserve tightening its policy and the U.S. dollar hovering around its strongest in more than a decade, investors have been shunning bullion, sending U.S. holdings to an eight-month low.