Last week, gold prices found support at the $1,750-per-ounce level before continuing to climb. They ended the week at $1,810.60 per ounce. Gold prices fell sharply a month ago when the Federal Reserve started talking about getting tougher on measuring inflation in the U.S. economy. But that was all it was—talk. The Fed was laying the groundwork to allow inflation, brought on by increased government spending, to go unchecked by calling it “transitory.” The Fed intended to let things go because raising interest rates while ballooning the national debt would wreck the government budget. The previous decline in gold prices may provide a buying opportunity for investors. In a recent paper, Goldman Sachs analyst and vice president of commodities Mikhail Sprogis said, “In a scenario where the global economic recovery does not play out as expected or inflation begins to move materially above expectations, we see material upside to gold given its undervaluation and low allocation from the investment community. Therefore, we think that gold may be a good strategic purchase here for portfolio managers looking to hedge against tail risks of macro volatility.” Rick Andrews is president of Avant Capital Management.