Gold and Bitcoin as Inflation Hedges

A Regime-Dependent, Data-Driven Analysis for Singaporean Retail Investors

Research Summary

Hedges are Regime-Dependent,
not Automatic.

Our 2026 research project debunks the "static hedge" narrative. Neither asset provides mechanical protection against Singapore's CPI. Instead, the results reveal assets that respond to global liquidity and currency stress.

54%

Currency Bridge

Gold performance is explained by USD/SGD volatility, acting as a defensive stabilizer during macro stress.

47%

Sentiment Risk

Bitcoin acts as a liquidity sponge. Movements track sentiment indices rather than inflation fundamentals.

0.017

CPI Independence

A negligible statistical link. Both assets are independent of local Consumer Price Index fluctuations.

Key Analytical Findings

Quantitative insights from the finalized project analysis.

Defensive Stabilizer

Gold functions as a hedge against macro-uncertainty and currency devaluation. In the Singaporean context, it protects capital when the SGD weakens against the USD.

Primary Driver USD/SGD (-0.316)
CPI Correlation 0.017

Actionable Framework

Our project concludes that strategy depends on two factors: Macro Stress and Sentiment. Use this tool to simulate the recommended allocation bias.

50
Market Calm Crisis Regime (>70)
50
Extreme Fear Extreme Greed

Neutral Regime

Indicators are balanced. Maintain baseline diversification. Focus on currency movements and global liquidity signals.

Strategy Bias Neutral
1. Stagflation

High stress + weak currency. Gold becomes the primary pillar for capital preservation.

2. Policy Easing

Rising sentiment + low stress. Bitcoin acts as a liquidity sponge for tactical growth.

3. Volatility

Mixed signals. The project prioritizes dynamic regime identification over static holding.