News that the gross domestic product yield for the second quarter of 2021 came in lower than expected sent gold prices to recent highs on July 29, 2021. It’s yet another day on the bullion rollercoaster ride as the precious yellow metal reacts to a variety of reports depicting the condition of the United States economy. The path toward recovering from the closures and lockdowns relating to the COVID-19 pandemic last year remains fragile in light of the resurgence in COVID cases among the unvaccinated.
Gold prices shot up to nearly $1,830 an ounce this morning, up from $1,815 just hours earlier when trading began. Whether these are sustained gains or ephemeral reactions to just another round of economic data remains to be seen. But in the scheme of current affairs, it makes sense. Investors are still worried about inflation, which may prove to be more than just a temporary situation stemming from mere supply shortages.
There seems to be a sort of reckoning happening on the employment scene, with many folks who were making less than $10 or $12 an hour not returning to jobs that are paying less than $15 an hour. Those who were once employed in cubicle-based jobs are resigning from positions in which the employer is requiring a return to the physical office.
Some employers are struggling in making these adaptations, and this is leaving labor gaps in a variety of sectors, including manufacturing, food and lodging, tourism, and information services. We will see how all this shakes out, but for now tangible assets such as gold and silver continue winning at a time when investors are growing increasingly wary of stocks and bonds.