Gold Rises Slightly to Start Second Quarter
4/1/2021 8:42:57 AMThe first quarter was a loss for Gold, but the second quarter is starting stronger as Gold rose to end this holiday-shortened week. It hit $1,733.72 by 9 a.m. EDT. Precious Metals are mostly trading within a range, with no major surprise jumps.
Joe Biden unveiled his infrastructure investment plan this week. The plan is to be funded by changes in the corporate tax rate, with the global tax rate rising to 21% and the U.S. rate rising 7% to hit 28% in total. Treasuries jumped on Wednesday as he laid out the plan, but in the aftermath, investors are betting on inflation with Gold, fueling the Thursday bump.
The container ship that had been blocking traffic in the Suez Canal was re-floated by dredges and strong tides on Monday. The losses to global shipping incurred by the blockage are expected to total roughly $400 million per hour.
The collapse of hedge fund Archegos Capital is creating a large amount of fallout in the financial world as over-exposed investment banks rush to unwind their positions. The SEC is investigating whether there was any regulatory misconduct. JPMorgan took massive losses and other investment banks are also expected to come away bloodied, though some, like Wells Fargo, were able to get out with a minimum of loss.