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.

Last week, gold prices challenged the $1,800-per-ounce level, hitting $1,788.00 per ounce before retracing to the $1,700-per-ounce support level (see the following charts).

Gold Futures Contracts—Weekly

The chart at the bottom shows the continued strong performance of gold versus the S&P 500 Index, as investors continue to rely on it as a safe haven during these uncertain economic times.

The U.S. federal stimulus programs are now flooding the economy with cash at an unprecedented level, which could affect the price of gold.

Peter Grosskopf, chief executive of asset manager Sprott, believes gold prices may rise beyond a record. Says Grosskopf via MarketWatch, “We are close followers of trading and flows in the bullion markets, as well as the underlying technical analysis, most of which point to gold over $2,000 sometime late this year or early next. …

“There is too much debt at all levels. We have borrowed from the future, and there is not enough economy to pay it down. That equation requires much more financial repression going forward, and gold is a great hiding place from that process.”

Rick Andrews is president of Avant Capital Management.



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