GraniteShares analyst and investor Will Rind recently said in an interview that the main reason for the protracted correction is the fact that the US financial authorities have not announced the launch of a specific financial assistance plan for the national economy.
"After the announcement of the results of the presidential elections in the United States, the price of gold rose to $ 1950 per ounce in the hope of an early adoption of the financial assistance program, but this has not happened yet," the expert said. Moreover, the financial markets are in high spirits, and investors are willing to take risks. This means that they are temporarily not interested in gold as a defensive asset. The stock market is experiencing capital inflows, while the gold market is at the bottom.
However, gold has a reason to remain optimistic in 2021. “Even if the yellow precious metal will not be able to repeat the record level of prices, as happened with the stock market, I still remain optimistic about the future prospects in the gold market. What will investors do when they need a protective asset to preserve their capital during the exacerbation of the global financial crisis? ”- such a rhetorical question left Will Rind unanswered.