Gold Set To Soar As Inflation Fears Mount

Gold Set To Soar As Inflation Fears Mount

Last year proved to be a gold speculator and investor's dream after gold prices rallied hard to hit historical highs thanks to a perfect storm of a global pandemic, massive government stimulus packages, weakening dollar, and a stock market bull run that had finally run out of gas. The torrid rally represented the sharpest gain the metal has mustered in more than a decade, with gold prices nearly doubling between August 2018 and August 2020.

Unfortunately, the rally has lately run out of steam, with gold prices pulling back sharply from an all-time high of $2,069.40 an ounce, set on Aug. 6, 2020.

Gold prices have been in the dog house for much of the current year ever since the Federal Reserve signaled higher interest rates amid expectations of rising inflation, while a brawny dollar has not been helping matters.