Rising inflation in US carries up with it price of gold; speculators bullish

New York

A GLIMMER of hope is emerging for gold bugs from something that Americans have not seen much of in quite a while: inflation.

Sure, US consumer prices have been mostly subdued since the financial crisis - the rate of gain actually eased over the past three years, most recently because the cost of oil plunged. But crude prices rebounded last month, the US dollar's rally stalled and investors who in December were unloading bullion and bracing for deflation are now stepping up bets that inflation is returning.