Market insights and analysis

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

2nd Quarter | 2022

Market insights and analysis

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

Economic war

Last week, gold prices consolidated above their support level at $1,900 per ounce. The metal closed the week at $1,945.60 per ounce.

In geopolitical news, sanctions from Western allies meant to destroy the Russian ruble have failed so far. The ruble has now recovered to its pre-sanction value.

Fox Business reports that in recent testimony before the House Financial Services Committee, Treasury Secretary Janet Yellen laid out some of the repercussions the Russian-Ukraine war could have on the global economy, “including severe disruptions to the global flow of food and energy.”

Said Yellen, “… Energy prices are going up, the price of wheat and corn that Russia and Ukraine produce are going up and metals that play an important industrial role—nickel, titanium, palladium—the cost of those things are going up. This is going to escalate inflationary pressures as well.”

Investors may want to consider adding gold to their portfolios to hedge against the inflation that may result from this war.

 Rick Andrews is president of Avant Capital Management.



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