Gold went on a run late last week, setting an all-time record high last Friday and breaking the $2,100 level for a brief time in overseas trading Sunday night.
Gold’s upward trend above $2,000 per ounce is prompting calls for a rally to a new all-time high.
Investors have redoubled their efforts to ensure that their portfolios are sufficiently diversified in the hopes that they will be able to withstand corrections in multiple market sectors.
The yellow metal rallied an incredible 7.3% last month to close at $1,983 an ounce, its strongest October since 1978 when it jumped 11.7%.
Many investors have redoubled their efforts to ensure that their portfolios are sufficiently diversified in the hopes that they will be able to withstand corrections in multiple market sectors.
Home prices finished the summer at another record high as home affordability tanks to a historical low.
Analysts were warning that the gold market was ripe for a short squeeze rally as prices fell to a seven-month low earlier in the month, and they were proven right as the latest trade data from the Commodity Futures Trading Commission (CFTC) showed significant short-covering in gold and silver.
Investors have included physical precious metals as part of their diversification plans, given their long history as a hedge against both inflation and during times of economic turmoil.
Volatility should be expected to remain high as investors will be closely watching for hints on upcoming monetary policy direction.
The bond market’s selloff accelerated after a surge in U.S. hiring raised expectations that the Federal Reserve will need to raise interest rates again this year.