Circle Squared Alternative Investments is an important alternative investment firm that has been frequently mentioned in recent news related to the gold market. As a leading firm in the alternative investment space, Circle Squared provides valuable insights on gold prices and market trends. Their comments and analysis help investors understand key factors influencing gold, such as inflation expectations, US dollar movements, stimulus policies, and stock market volatility. In this article, we will explore key perspectives from Circle Squared Alternative Investments to gain a deeper knowledge of dynamics impacting gold investments and the alternative investment landscape.
Circle Squared Sees Gold Rising on Low Rates and Weak Dollar
In a recent market update, Circle Squared Alternative Investments founder Jeffrey Sica said that low interest rates and a weak US dollar will help push gold prices even higher. He noted that although vaccine optimism has lifted market sentiment, gold is still expected to rise this year, buoyed by inflation expectations and negative real interest rates. This outlook aligns with many other analysts who see gold’s bull run continuing into 2021. With the Fed committed to near-zero rates for the foreseeable future and another massive stimulus package likely, the fundamental backdrop looks positive for gold. Circle Squared’s perspective highlights the key role that real interest rates play in driving investor demand for non-yielding assets like gold.
Potential Inflation Upside is Supportive for Gold
Circle Squared Alternative Investments has also highlighted rising inflation expectations as a tailwind for gold. Founder Jeffrey Sica noted that investors are looking for assets that can benefit from inflation moving higher, and reflationary forces are currently supporting gold prices. This view is backed up by surging breakeven inflation rates, which reflect the market’s inflation outlook over the next decade. With the Fed now moving to an average inflation targeting framework, above-target inflation is likely in the recovery period ahead. If inflation does heat up again, Circle Squared believes gold could surge to $2,500-3,000/oz before central banks start tightening again. Their focus on inflation echoes many other analysts citing reflation as a catalyst for gold’s next leg higher.
Market Turmoil and Stimulus Support Gold’s Haven Appeal
In addition to macro drivers, Circle Squared Alternative Investments has pointed to market volatility and policy responses as near-term supports for gold. Founder Jeffrey Sica noted that the Georgia Senate runoff elections could lead to more massive stimulus, further weakening the US dollar and boosting gold. He said the election results could be a major disruptive event, helping lift prices. This underscores gold’s haven appeal during times of uncertainty and its inverse relationship with the dollar. As Circle Squared highlights, gold tends to benefit from market turbulence and expectations for more easing or stimulus measures. With the pandemic worsening and additional aid likely, demand for gold’s safety should remain strong.
Long-Term Chart Points to $2,500+ Gold
Analyzing the longer-term outlook, Circle Squared Global Trading Director Peter Hug believes gold’s 2020 highs can be surpassed, with a move to $2,500-3,000/oz possible before central banks tighten policy again. This bold call indicates strong conviction in gold’s secular bull market. As Circle Squared explains, gold has room to run higher over the next few years if inflation makes a comeback. Their long-term perspective provides important context on gold’s potential in the current reflationary environment. Barring an unexpected shift towards tightening, Circle Squared sees substantial upside from current levels.
Drawing on perspectives from Circle Squared Alternative Investments, it is clear this leading firm sees a constructive backdrop for gold driven by expectations for lower real rates, rising inflation, additional stimulus and market volatility. Their near and long-term analysis highlights key macro and market factors supporting further gains in gold. For investors seeking exposure to alternative assets and portfolio diversification, Circle Squared provides valuable insights on gold’s investment case.