Gold futures opened at $1954 on the first trading day in January and closed today at $1770.60, suffering a drawdown of $184. That means that gold lost 9.416% in value over the first half of 2021.Headwinds from dollar strength, a flight into the cryptocurrencies during the first quarter of 2021, higher yields in U.S. debt instruments, and a strong U.S. equities markets all contributed to gold’s price demise during the first half of this year.
2021 is hard to estimate. A main factor and focus will be how hot inflationary pressures get. Although the CPI has grown to a 5% inflationary rate, and the PCE is now almost double the mandate of the Federal Reserve at 3.9%, inflationary pressures could most certainly be sustained and not temporary as the Fed continues to insist they will.
2021 is hard to estimate. A main factor and focus will be how hot inflationary pressures get. Although the CPI has grown to a 5% inflationary rate, and the PCE is now almost double the mandate of the Federal Reserve at 3.9%, inflationary pressures could most certainly be sustained and not temporary as the Fed continues to insist they will.