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 surged toward their 50-day moving average after the consumer price index (CPI) for May was released on Friday (June 10). The metal closed the week at $1,875.50 per ounce.

The Labor Department reported that the CPI, an index of everyday goods such as food, gas, and rents, rose 8.6% in May from a year ago, the highest increase in over 40 years.

As the following chart of the breakdown of this CPI’s categories shows, the root cause of today’s inflation is the same as it was in the 1980s, soaring energy costs.

Fox Business provided further details: “Energy prices rose 3.9% in May from the previous month, and are up 34.6% from last year. Gasoline, on average, costs 48.7% more than it did one year ago and 7.8% more than it did in April. In all, fuel prices jumped 16.9% in May on a monthly basis, pushing the one-year increase to a stunning 106.7%.”

If you haven’t considered adding gold to your portfolio, now may be the time, as it can provide a hedge against these out-of-control energy prices.

Rick Andrews is president of Avant Capital Management.



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