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 prices ended last week at $1,856.20 per ounce and remained above the 200-day moving average on the daily chart.

The reason for the rebound is the developing “gold triangle,” which consists of the following three factors:

1. Massive stimulus spending (with the latest projected installment coming in at almost $2 trillion).

2. The resulting inflation on the horizon.

3. The continuing collapse of the U.S. dollar.

According to MarketWatch, “Gold futures climbed on Wednesday, notching their highest finish in nearly two weeks, as expectations for further fiscal stimulus measures under the Biden administration pressured the U.S. dollar, boosting prices for the dollar-denominated precious metal.

“The market expects additional fiscal stimulus measures to be ‘announced very soon,’ providing support for gold, said Chintan Karnani, chief market analyst at Insignia Consultants. In testimony to the Senate Financial Committee Tuesday, President Joe Biden’s nominee for head of the Treasury Department, Janet Yellen, said the U.S. should ‘act big’ on the economy.”

Rick Andrews is president of Avant Capital Management.



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