It’s been a week of watchful waiting as bullion speculators keep their eyes on the gold and silver price tickers. Gold started the week below $1,850, and many were talking about buying on the dip, which they did.
By the close of Monday, May 17, 2021, gold had ticked upward beyond $1,865 an ounce, and it was (almost) all uphill from there, with the yellow precious metal trending as high as $1,890 this morning of May 21. However, with every step comes the occasional stumble, and that’s what happened this morning. Gold was taking a sharp loss as it crossed below the $1,875 barrier and was showing no signs of tapering its decline.
Meanwhile, silver prices started the week at around $28.20 an ounce and have shown more stable trajectory as of late as compared to its pricier gold counterpart. Still, silver took a dive with gold this morning, dipping to $27.75.
The big question many have as we march toward the last full week of May is what about inflation? Grocery, lumber, and housing prices are all heading up, up, up, and yet the Federal Reserve has seemed reticent about raising interest rates anytime soon. The confluence of continued inflation, low interest rates, and stuttering progress away from the COVID-19 pandemic, which appears to be waning in the United States, leads to choppy waters for bullion at this time.
Anything goes right now, and all bullion investors can do is be mindful in how they hedge their bets. Gold and silver tends to win out in situations where inflation influences the economic setting. But as we’ve seen lately, nobody should rest on the laurels of the past. It’s a brave new world, and the economy – and its affect on gold and silver prices – may lend some surprises.