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 remained above the 50-day moving average, closing the week at $1,883.90 per ounce (see the following chart).

Gold prices are closing the year up over 22%—even after setting new all-time highs before consolidating back around $1,900 per ounce. Most of the fundamental factors that supported higher gold prices this year are still in play for next year. As the Financial Express reports, “Global policy makers will continue to resort to monetary inflation, credit expansion and government spending to tackle the economic fallout of the pandemic. Use of monetary policy will mean failure to normalize the world economy as central banks will be trapped in a state of perpetual policy manipulation, financial systems will continue to walk on fiscal crutches, and the system will be marred with vulnerabilities. This will ensure that gold remains a preferred portfolio asset in 2021 and beyond.”

For more information on the function of gold in portfolios and the optimal allocation based on Flexible Plan’s findings, see the 2020 update of the white paper “The role of gold in investment portfolios.”

Rick Andrews is president of Avant Capital Management.



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