Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

2nd Quarter | 2021

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Gold declined back to the support level at $1,750 per ounce following a strong U.S. economic report on Friday (August 6). Prices closed last week at $1,763.10 per ounce.

For investors who believe the recent rising inflation may not be “transitory” and are interested in increasing their allocation to gold as a hedge, another buying opportunity may be presenting itself.

Deutsche Bank's credit strategist Jim Reid is also trying to evaluate the nature of today’s inflation, asking, “With inflation forecasts creeping ever higher, at what point will the surge in 2022 inflation render the ‘transitory’ debate moot?”

Financial blog Zero Hedge believes Reid is right, “especially since if inflation is truly transitory the higher base effects of 2021 would mean that 2022 FY inflation growth should actually be lower and well below the Fed's 2% target.”

“In other words, Wall Street can't have it both ways,” says Zero Hedge. “It can't be saying that soaring inflation is transitory on one hand while on the other predicting the highest 2022 CPI since the global financial crisis.”

Rick Andrews is president of Avant Capital Management.



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