{"id":311239,"date":"2021-07-29T18:45:00","date_gmt":"2021-07-29T15:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/commodities-corner-where-gold-stands-a-year-after-hitting-a-record-high-price\/"},"modified":"2021-07-29T18:45:00","modified_gmt":"2021-07-29T15:45:00","slug":"commodities-corner-where-gold-stands-a-year-after-hitting-a-record-high-price","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/commodities-corner-where-gold-stands-a-year-after-hitting-a-record-high-price\/","title":{"rendered":"#Commodities Corner: Where gold stands a year after hitting a record-high price"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a329340432be\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a329340432be\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-where-gold-stands-a-year-after-hitting-a-record-high-price\/#Gold_futures_trade_over_10_below_their_record_highs\" >Gold futures trade over 10% below their record highs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-where-gold-stands-a-year-after-hitting-a-record-high-price\/#Myra_P_Saefong\" >Myra P. Saefong<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Commodities Corner: Where gold stands a year after hitting a record-high price<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Gold_futures_trade_over_10_below_their_record_highs\"><\/span>\n  Gold futures trade over 10% below their record highs<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000355675\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000355675\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Nearly a year since gold marked its highest price on record, the precious metal has little to show for it.<\/p>\n<p> On Aug. 6, 2020, gold futures<br \/>\n        GC00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210034565\/delayed\" class=\"positive\">+1.69%<\/bg-quote><\/p>\n<p>        GCZ21,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210039437\/delayed\" class=\"positive\">+1.67%<\/bg-quote><br \/>\n       settled at $2,069.40 an ounce, their highest finish on record. A day later, prices hit an intraday, all-time high of $2,089.20.<\/p>\n<div class=\"paywall\">\n       The record highs \u201cwere driven by the initial flight to safety, followed by the reaction to the massive monetary and fiscal policies\u201d put into play to strengthen the economy in the wake of the pandemic, says William Cai, co-founder and managing partner at Wilshire Phoenix. Due to the pandemic, the U.S. Federal Reserve has kept its benchmark interest rate close to zero, benefiting gold.<\/p>\n<p>Prices for the metal, however, have eased back by around 12% from the record and may suffer the first yearly loss since 2018. <\/p>\n<p>The pullback in gold is a \u201chealthy consolidation,\u201d with the market digesting the effects of those monetary policies and potential follow-on policy adjustments, Cai says. Inflation, meanwhile, looks to be the major factor that will continue to support gold prices in the medium term, he says.<\/p>\n<p><strong>Read:<\/strong> Global gold investment down 60% in first half of 2021, report finds<\/p>\n<p>The Fed has helped to ease some of the uncertainty driving demand for gold as a haven. The central bank\u2019s\u00a0loose monetary policy\u00a0contributed to the creation of an \u201ceconomic bubble\u201d to offset Covid-19\u2019s harmful economic impact, says Drew Rathgeber, senior futures broker and branch manager at AIO Capital.<\/p>\n<p>On March 8, gold futures dropped to $1,678, their lowest since April 2020, amid strength in the U.S. dollar and a rise in Treasury bond yields, which can dull demand for gold.<\/p>\n<p>But don\u2019t count gold out yet, says Rathgeber. \u201cA perfect storm is setting up for gold\u2026to go much higher.\u201d Inflation is \u201chere to stay for a while,\u201d in part due to the Fed\u2019s loose monetary policy and its failure to highlight \u201ccost-push inflation,\u201d he says. A rise in the cost of production and raw materials leads to cost-push inflation, and inflation can decrease the value of the dollar over time, raising gold\u2019s investment <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eal.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetPullQuote\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetPullQuote\n            article__inset--inline\n  \"><\/p>\n<div class=\"wsj-article-pullquote article__inset__pullquote \">\n<p class=\"pullquote-content article__inset__pullquote__quote\">\n        <span class=\"l-qt article__inset__pullquote__mark--left\">\u201c<\/span><br \/>\n        \u201cA perfect storm is setting up for gold\u2026to go much higher.\u201d<br \/>\n        <span class=\"r-qt article__inset__pullquote__mark--right\">\u201d<\/span><\/p>\n<p>        <small><br \/>\n          <span class=\"inset-author article__inset__pullquote__author\">\u2014 Drew Rathgeber, AIO Capital<\/span><br \/>\n        <\/small><\/p><\/div>\n<\/p><\/div>\n<p>       The Fed has said the sharp rise in inflation this year is \u201ctransitory,\u201d suggesting that the central bank will not tighten monetary policy and will continue to hold off raising interest rates, which is supportive for gold. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p> On July 28, the Fed reiterated that it believes\u00a0higher inflation this year reflects transitory factors. It also said the U.S. economy has made progress toward reaching its standards for easing back on its bond-buying program, but not enough for it to start doing so yet.<\/p>\n<p>The Fed is \u201cin a bind,\u201d says Matt Psarras, head of client relations and market research for GoldCore USA. If inflation is not transitory and instead persistent, \u201cit will feed on itself and eventually\u2026boil over into a \u2018consumer strike\u2019 as wage growth falls far behind the cost of living.\u201d<\/p>\n<p>As money becomes worth less, \u00a0gold prices will rise, he says. And if management of debt issues becomes \u201cdisorderly,\u201d gold could go \u201cparabolic\u201d as investors clamor to buy it.<\/p>\n<p>At around $1,800, Psarras says gold is \u201cexceptionally cheap.\u201d It can moderate investors\u2019 emotions during a time of crisis, without fully exposing them to the market. \u201cGold cannot go to zero\u2014almost everything else can,\u201d he says.<\/p>\n<p>On Thursday, futures prices for the precious metal were up by more than 1% in the wake of the Fed\u2019s latest policy update and weaker than expected U.S. economic data.<\/p>\n<p>Looking ahead, interest rates, debt, and inflation are the market indicators to watch, says Psarras. If interest rates rise, inflation stays nominal, and debt levels become more sustainable, \u201cgold will lose favor as demand for a safe haven ebbs,\u201d he says.<\/p>\n<p>If interest rates stay low or fall further, or inflation rises and possibly switches to stagflation where growth falters, then gold will \u201crise with gusto.\u201d<\/p>\n<p>Either way, on a long-term basis, a modest 10% allocation in gold makes a \u201cworld of sense,\u201d says Psarras.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Myra P. Saefong\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/myra-p-saefong\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/MktwSaefong\",\"text\":\"@MktwSaefong\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:mpicache@marketwatch.com\",\"text\":\"mpicache@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Myra_P_Saefong\"><\/span>Myra P. Saefong<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-756D-5BE71F4F0D3C%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Commodities Corner: Where gold stands a year after hitting a record-high price&#8221; Gold futures trade over 10% below their record highs Nearly a year since gold marked its highest price on record, the precious metal has little to show for it. On Aug. 6, 2020, gold futures GC00, +1.69% GCZ21, +1.67% settled at $2,069.40 an&#8230;<\/p>\n","protected":false},"author":1,"featured_media":311240,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-311239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/311239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=311239"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/311239\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/311240"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=311239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=311239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=311239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}