Market insights and analysis

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

1st 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 continued moving up from the support level at $1,675.00 per ounce, closing the week up at $1,741.70 per ounce.

Last week, CNBC reports that the Federal Reserve projects that:

-“The central bank now expects real gross domestic product to grow 6.5% in 2021, compared with its 4.2% forecast from its December meeting.

-The Fed estimates the unemployment rate will fall to 4.5% in 2021, below the previous estimate of 5%.

-The central bank now sees inflation running to 2.4% this year, above its previous estimate of 1.8%.

So, despite the Fed projecting the strongest GDP growth in 40 years—due in large part to the $6 trillion post-COVID recovery stimulus over the past year—and inflation for 2021 already projected to be OVER its 2.0% target, most members of the Federal Reserve are still expecting to keep rates near zero through 2023. 

The bond market seems to believe that the Fed will be forced to eventually raise rates, but how high will inflation need to get for the Fed to realize that the “temporary” inflation is here to stay? Significant gold allocations to an investor portfolio can be the best way to mitigate against the volatility.



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