Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

3rd 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.

Last week, gold prices consolidated above the 50-day moving average on the weekly chart, closing the week at $1,879.60 per ounce.

As we look back at the first half of the year, inflation has been a major headline topic so far. Financial analysts around the world have taken notice, and what it could mean for gold.

The Financial Express reports, “With trillions of dollars of stimulus trickling down to the real economy, accelerating vaccination rollouts and unfixed supply chains, higher inflation has become the central market-moving theme so far in 2021. In the US, Personal Consumption Expenditure jumped 3.6% in the year to April. The Consumer Price Index registered a 4.2% growth in April, its largest increase in almost 13 years. A higher inflationary environment is good for gold, which is seen as a reliable store of value especially when rates are anchored at zero levels in much of the developed world. ...

“Going forward, markets might get a reality check as the timing of recovery gets pushed further down the road and the disconnect between the economy and financial markets becomes evident. Gold will then yet again prove to be a relevant portfolio asset.”

Rick Andrews is president of Avant Capital Management.



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