Gold is a marketable commodity, so it isn’t a very good measure, since it can be bid up or down in dramatic fashion. It was unreasonably bid up and now it’s seeking a realistic level.
I’ve tried to think of something that would be a reasonable measure of inflation that retains its value and isn’t overly subject to wild speculation. I haven’t thought of anything yet. Do you know of anything?
Gold isn't a good measure of the value of the dollar?