Gold fell to its previous support level at $1,670 per ounce last Wednesday (August 11) on the report that the consumer price index (CPI), a measurement of the changes in the retail prices of the same goods and services over time, slowed in July. Gold prices then rallied, breaking above the previous support level at $1,750 per ounce to close the week at $1,778.20 per ounce. The CPI increased 0.5% last month after climbing 0.9% in June. In the 12 months through July, the CPI advanced 5.4%. Even with this drop, the CPI remained at a 13-year high on a yearly basis. However, the producer price index (PPI), an index of changes in wholesale prices, surged to 7.8% in July. Wholesale price increases are generally a precursor to higher consumer prices. At the current price of gold, investors interested in hedging their portfolios against sustained inflation with gold may still have a “buying opportunity.” Rick Andrews is president of Avant Capital Management.