Investing in Gold: What’s Next After New Highs?

Gold prices recently hit new all-time highs, pushing through the previous highs set in 2011. The yellow metal has risen about 30% from its March lows and has been trending higher for the past two years.

It’s not difficult to understand why investing in gold has been so popular lately.

As the COVID-19 crisis deepened earlier this year, the Federal Reserve pushed monetary policy to dovish levels previously thought to be impossible. Between March and June, the Fed’s balance sheet jumped by around $3 trillion. At the risk of oversimplifying, that means that the Fed just created $3 trillion in new money and dumped it into the financial system. To put that in perspective, that number represents 14% of the entire $21.5 trillion U.S. economy. Read more…

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