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The US economy appears to be cooling down. This is fueling hopes of an interest rate cut in the near future.
It is the latest US labor market report that has raised hopes of a rate cut in the US in September. The unemployment rate has risen and is the highest it has been since the end of 2021. Two interest rate cuts are currently expected this year. Falling interest rates are in turn good for higher gold prices. Whether we see the rate cut in September or not until November or December, it will come. Of course, the delay in the rate cut so far is disappointing, as an earlier date had been expected at the beginning of the year.
But even if prices continue to move sideways for a while, there is still a good time to enter the gold market. This is because gold mining shares will follow suit when prices rise. And that is what investors are waiting for. After all, many gold mining stocks have not yet really jumped on the higher gold prices. However, when gold mining share prices rise, they usually do so quite suddenly and quite strongly. Looking at recent easing cycles, lower interest rates have led to a sharp rise in the value of gold stocks. Central banks have been the main buyers of gold recently. The reason is that they want to build up long-term positions away from the US dollar.
Metals Focus, for example, assumes that central bank purchases will remain high, similar to 2023. The geopolitical crises continue to exist and so the move away from the US dollar and the desire for further diversification will remain on the central banks' radar. Private investors can familiarize themselves with stocks such as Sibanye-Stillwater or Aurania Resources.
Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ - focuses on copper and precious metals in South America. The flagship project is located in the Andes in Peru.
Sibanye-Stillwater - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ - is involved in gold and platinum metals and increasingly also battery metals with its projects in South Africa and the USA.
Latest company information and press releases from Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -) and Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/.
The US economy appears to be cooling down. This is fueling hopes of an interest rate cut in the near future.
It is the latest US labor market report that has raised hopes of a rate cut in the US in September. The unemployment rate has risen and is the highest it has been since the end of 2021. Two interest rate cuts are currently expected this year. Falling interest rates are in turn good for higher gold prices. Whether we see the rate cut in September or not until November or December, it will come. Of course, the delay in the rate cut so far is disappointing, as an earlier date had been expected at the beginning of the year.
But even if prices continue to move sideways for a while, there is still a good time to enter the gold market. This is because gold mining shares will follow suit when prices rise. And that is what investors are waiting for. After all, many gold mining stocks have not yet really jumped on the higher gold prices. However, when gold mining share prices rise, they usually do so quite suddenly and quite strongly. Looking at recent easing cycles, lower interest rates have led to a sharp rise in the value of gold stocks. Central banks have been the main buyers of gold recently. The reason is that they want to build up long-term positions away from the US dollar.
Metals Focus, for example, assumes that central bank purchases will remain high, similar to 2023. The geopolitical crises continue to exist and so the move away from the US dollar and the desire for further diversification will remain on the central banks' radar. Private investors can familiarize themselves with stocks such as Sibanye-Stillwater or Aurania Resources.
Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ - focuses on copper and precious metals in South America. The flagship project is located in the Andes in Peru.
Sibanye-Stillwater - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ - is involved in gold and platinum metals and increasingly also battery metals with its projects in South Africa and the USA.
Latest company information and press releases from Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -) and Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/.
