Gold Prices Spike To Nearly $1,820

0
American Eagles

Gold prices capped off the morning of May 6, 2021, by making a run for $1,800… Then $1,810… Then on to $1,820 before cooling off just before lunchtime kicked off on the Eastern Seaboard. It comes as a bit of a surprise after gold prices have spent weeks in the relative doldrums, bouncing between $1,770 and $1,800 for the most part with little seeming prone to kick gold prices either up or down.

Is it an aberration or the first real sign of vivid life for gold, which has maintained a steady, if (one might say) boring, path in the upper $1770s? With the United States economy picking up pace and increasing COVID-19 vaccinations suggesting we could see a return to quasi-normalcy by this July according to the Centers for Disease Control and Prevention, it might look as though better times are just around the corner.

But, not so fast… Inflation is kicking in, and production shortages caused in part by COVID-19’s wrath last year has left prices for everything from pork to lumber going through the roof. Meanwhile, there is a huge job shortage right now, with companies in virtually every industry needing to hire throngs of new workers. On the surface, this is a good thing, but the longer we go with fewer workers in manufacturing lines, the more shortages we are going to see – and the higher consumer prices may go.

Unsurprisingly, all of this can affect bullion prices, as investors looking to build a hedge against inflation and other economic woes start building or expanding on their precious metals portfolio. What tomorrow brings is anyone’s guess, but all signs point to continued price increases across many sectors as America – and the rest of the world – reopens and demands grow on strained supplies.

LEAVE A REPLY

Please enter your comment!
Please enter your name here