Gold prices are holding above $1,700 an ounce as recent data has highlighted a broad-based rise in inflation.
There is so much uncertainty because of the global lockdowns initiated last year in March as governments tried to stop the spread of the deadly COVID-19 pandemic.
Putnam said that according to different scenarios he has run, because of the base effects of last year, annual inflation could rise as high as anywhere between 3.4% and 3.7% by May.
However, Putnam added that instead of a perfect trifecta, gold investors might have to settle for two out of three: rising inflation and low interest rates.
They don’t want to just see a quick rebound and call it in victory.