Crude Oil has historically had the largest impact on the year-over-year U.S. price inflation rate and with crude oil rapidly rising it means U.S. price inflation has no chance of a meaningful decline unless the Fed is very aggressive with rate hikes.
The more aggressive the Fed is with hiking rates, the better it will be for gold... because the market will realize that the Fed has lost control of inflation. Right now, many people incorrectly believe that inflation is being caused by temporary supply chain disruptions, but the main reason for supply chain disruptions is the fact that people aren't being paid enough money to deliver goods. The supply chain disruptions will go away if wages get raised enough, but higher wage growth will lead to higher price inflation... causing a need to continuously raise wages further to keep the supply chain going... causing an upward inflationary spiral.
Most investors have been brainwashed by the "buy the dip" mentality with tech stocks, not realizing that we are entering into a new decade-long cycle of commodities outperforming tech stocks.