Gold continues to be a talking point in the financial world. The question is where is it headed from here? Analysts are pointing to key indicators, mainly fueled by inflation, and what could be in store for gold in the short term.
The central bank’s loose monetary policy continues to fuel an economic bubble in an attempt to offset COVID-19’s economic impact. AIO Capital’s Drew Rathgeber told MarketWatch:
“A perfect storm is setting up for gold…to go much higher.”
Inflation is “here to stay for a while,” says Rathberger. With inflation comes a decrease in the value of the dollar over time and will continue to raise appeal for the precious metal.
According to a new poll, 86% of those surveyed were worried about inflation. It also found that 88% are “somewhat” or “extremely” worried about the rising costs of living.
A recent Fox News poll found that 77% were worried about taxes.
But it doesn’t take much to realize that no matter where you look, it’s already here. The cost of living is increasing and higher taxes could be looming in the future for many of us.
The annual inflation rate accelerated to 5.4% last month, which is almost 270% higher than what the Fed considers “healthy.”
It would be correct to say that the numbers do not seem to be going anywhere but up lately.
And by numbers, we don’t only mean the high prices that are being passed onto Americans.
The Senate struck a $550 billion deal today as part of Biden’s agenda and is leaving the administration hoping for more money.
The $3.5 trillion package on the table is their next move that could allow the spending bill to pass without GOP support.
A recipe for disaster, more government spending is likely to spur even more inflation.
The Fed’s loose monetary policy is stimulating the economy more aggressively than at any time since the Great Depression.
And the timing couldn’t be worse.
The Fed believes the higher cost of goods every American is seeing today will be “transitory,” yet their preferred measure of inflation ran at an annual rate of 6.1%, the highest it has been since the inflation crisis of the 1980s.
It is sounding a lot more like persistent inflation.
What lies ahead could be consumer strikes as wage growth falls far behind the cost of living.
The value of the dollar is eroding. Combine this with poor management of our national debt and a lingering pandemic, can you trust that everything is under control?
What this tells us is that it also happens to be one of gold’s most significant support cases for the upside.
Gold is historically known as a store of wealth especially during times of crisis. Its track record spans thousands of years so it’s no surprise it hit an all-time record high in the wake of the pandemic.
The US federal debt hasn’t been this high since World War II. It’s time to make moves now because as we all know– it’s better to be safe than sorry.
Call American Hartford Gold today at 800-462-0071 to learn how Americans are protecting their wealth and retirement savings with assets like gold.