The embedded, monetary inflation impact on the gold is well captured by what we call gold’s mid-cycle level. Essentially, it can be seen as the slow-moving, trending component of the gold price which is solely based on fundamentals and not on the gold price itself (such as a moving avg.)

Overlaying the mid-cycle level is a faster-moving, cyclical component which is influenced by inflation expectations and nominal yields.

The product of the two components is the gold price itself.