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.

Inflation on the rise

Last week, gold prices continued to hold above their 50-day and 200-day moving averages. The metal closed the week at $1,816.50 per ounce.

On Wednesday (January 12), the U.S. government reported the consumer price index (CPI), a measure of retail price inflation, hit 7% for the year. This is the highest rate recorded since June 1982.

Looking at the previous chart, one thing stands out: When the rate hit 7% in 1982, inflation was decreasing. Now, inflation is increasing. And if today’s CPI was calculated as it was 40 years ago, it would be around 15%—higher than any recorded rate.

Investors may want to consider adding gold to their investment portfolios as an inflation hedge while it is still at these support levels.

Rick Andrews is president of Avant Capital Management.



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