Inflation Is up. So Why Is Gold Down?

The $1.9 trillion stimulus package has been approved as expected. But we’re getting closer and closer to reopening. The Federal Reserve’s money-printing strategy has us at inflation’s door. So what does that mean for the markets?

Let’s start with commodities and discuss trading gold during inflation.

First, let’s address the frenzy we’re seeing in the stock market. With all of this extra stimulus and nothing to do, people are trading a lot. That’s all well and good… until you get stomped.

We started to see that even last week as the Nasdaq entered correction territory. Then another big move followed the jobs report, so we gave you a little trading advice.

WealthPress Senior Strategist Roger Scott said during our Monday morning roundtable that he was staying away from big-name tech stocks as the Nasdaq pulls back. He’s looking in other areas.

Trading Gold During Inflation in 2021

We’re seeing a resurgence in a lot of areas that were dead after COVID-19 hit. 

As we reopen, travel stocks, gas and energy are rising. At first, that was a result of summer and the reopening. Now it seems to be a direct result of inflation and rising prices everywhere.

Gold is typically one of the best hedges during inflationary periods…

So why is it down?

Part of the reason is that investors are using other things, such as cryptocurrencies, to protect themselves rather than trading gold during inflation.

When trading gold, there’s one thing to keep in mind: Gold isn’t a stock like Tesla Inc. (Nasdaq: TSLA) or Inc. (Nasdaq: AMZN), where the stock goes up or down with the wind. It takes time.

However, just like Tesla, pullbacks from big moves do happen. Tesla was one of the best stocks of 2020, and now it’s taking a beating. It went too high, too quickly. Now it’s pulling back to correct that move.

A year ago, when COVID-19 hit, gold soared to all-time highs in a matter of months — that doesn’t happen. Gold is also experiencing a pullback to digest that huge move from a year ago. 

For a deeper look into trading gold during inflation this year, watch our video below where we sat down with trading experts Roger Scott, James West and Adam Sarhan and dissect the markets.

As always, feel free to email your trading questions to and make sure to stay ahead of the markets by subscribing to our YouTube channel.

P.S. What do an 83% stock price dip, dividend cuts and a mountain of debt have in common?

They were all bad news headlines about Apache Corp. in April 2020.

So with those awful headlines, how did ex-hedge fund manager Lance Ippolito know to buy in at that time…

And walk away with a 157% return just over a month later?

He just waited for this.

trading gold during inflation jobs report’s effect on the market trading the Nasdaq correction stocks to target for reopening trading bitcoin volatility Lucid Motors SPAC deal Nasdaq correction in 2021 tech stocks to target in 2021 trading strategies for inflation healthcare stocks to watch in 2021 gamestop-robinhood congressional hearing how rising inflation affects bond yields tech stocks to watch in 2021 reflation trade idea for 2021 pot stock market crash stocks to buy during rising inflation tesla buying bitcoin under-the-radar pot stock how short selling works simple stock picks WallStreetBets' silver short squeeze is workhorse a good investment GameStop short squeeze gamestop stock surge gun stocks for 2021 invest in gold in 2021 top sectors to invest in for 2021 stocks to trade under biden digital music stocks jpmorgan earnings report stock market analysis for 2021 defensive trading strategy EV stock play electric vehicle stocks to watch sectors to invest in Georgia Senate sweep goldilocks gridlock bitcoin vs. gold biotech stocks to watch in 2021 2020 stock market review amazon vs. alibaba impact of the stimulus package stocks to buy before january 2021 s&p 500 adding tesla 2020 santa claus rally stock market after the vaccine bitcoin stock forecast disney vs. netflix

Leave a Reply

Your email address will not be published. Required fields are marked *