Gold price getting crushed, here's why and where it's headed next - Gareth Soloway
Kitco News has launched its 2021 Outlook, which offers the most comprehensive coverage of precious metals markets in the new year. Trillions of dollars were pumped into financial markets in 2020 and that won't come without consequences. Economists expect that investors will be Bracing For Inflation in 2021.
(Kitco News) - Investors are dumping lower yielding assets like gold to buy higher volatility securities like Tesla shares and bitcoin, said Gareth Soloway, chief market strategist at In The Money Stocks, but Soloway is not selling his gold yet.
"The one thing I would say to investors that are into gold is stick with it. This to me is a classic retrace, it's had a great move up, it's seeing a sell-off," Soloway said. "The shorter term investors are saying, why am I in gold when bitcoin is going up 5% every single day, or 10% in a day, and they're selling their gold assets."
Soloway's comments come as Friday's nonfarm payroll report showed a loss of 140,000 jobs in December, the most since the start of the pandemic.
Inflation expectations were down as a result, with the TIP ETF falling on the weak jobs report. Inflation expectations are positively correlated with gold.