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.

Gold prices declined last week until they found support at $1,700 per ounce. The metal closed the week at $1,703.60 per ounce.

Last week, the U.S. Bureau of Labor Statistics reported that the consumer price index (CPI) year over year surged above estimates, reaching 9.1% in June from a year ago.

Fox Business reports this number is “a new 40-year high” and says “it marks the fastest pace of inflation since December 1981.”

“So-called core prices, which exclude more volatile measurements of food and energy, climbed 5.9% from the previous year. Core prices also rose 0.7% on a monthly basis—higher than in April and May—suggesting that underlying inflationary pressures remain strong and widespread,” says Fox Business.

In the face of the inflation hitting the U.S. economy, investors may want to consider increasing their allocation to gold, despite its retracement to previous support levels. The yellow metal has historically served as a hedge against inflation for investment portfolios.

Rick Andrews is president of Avant Capital Management.



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