Gold has been the worst inflation trade of 2021. Maybe it was due to the inflation trade was not enough with alternative non correlated assets like bitcoin and others. We have seen people flying into these "uncorrelated" assets only to see them become more and more correlated to market moves. Gold has been the uncorrelated asset for a long time. With this breakout, it is easy to see the direction of fund managers. Safety is becoming more important and there is very little safer (to institutions) than gold. $166 or $162 stop prices are good levels to make sure you do not get stuck holding the bag. My firm moved from underweight alternative strategies to overweight at the beginning of the year. Gold, oil, floating rate funds and a few other places can shield you from the growth drawdown that is expected. Lastly, I expect a bounce here soon to suck in more stupid money before a further decline in indexes so no rush. Average in over the next couple months as prices can easily reach $200+ in coming months. From there, we could reach $300 if fed cannot control inflation. Risk return here is worth a look.
This is not intended as investment advice. It is for informational purposes only. Good luck!
This is not intended as investment advice. It is for informational purposes only. Good luck!