Opinions differ as to when the key interest rate will be lowered for the first time in the USA and give the gold price a boost.
Whether in March, May or later, the gold price will certainly benefit when the first interest rate cut comes. Until then, we are unlikely to see any major jumps in the price of gold. There are still fears of an escalation of the Middle East conflict, which should help the gold price. The economy in China is important for the development of the gold price. And GDP there grew by 5.2% in 2023, even more than the government had assumed. By comparison, economic growth in 2022 was just three percent. Just like economic development, global politics is also a factor that influences the price of the precious metal.
The fact that the price of gold fluctuates is nothing new. When times are uncertain and determined by geopolitical crises, investors and central banks increasingly turn to gold. This was evident during the pandemic and the war in Ukraine, for example. The trade dispute between the USA and China and Brexit pushed up the price of the precious metal in 2019, reaching more than USD 1,500 per ounce at the time. In the last two years, the sharp rise in inflation has made gold more attractive and expensive.
However, inflation is weakening, for example in the UK (although it rose to four percent in December after 3.9 percent in November). And so the Bank of England is also expected to end its cycle of interest rate hikes. The situation is similar in France, the USA and here in Germany. The decline in inflation is not happening in a straight line. Many gold companies have not yet taken part in the jump in the gold price. Investments in GoldMining or Fury Gold Mines, for example, could be worthwhile.
GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - owns a large portfolio of gold and gold-copper properties in the USA, a uranium project and shareholdings in Gold Royalty, U.S. GoldMining and NevGold.
Fury Gold Mines - https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ - is very well financed and has projects in Quebec and Nunavut. The company has a gold platform of several million ounces of gold.
Current company information and press releases from GoldMining (- https://www.resource-capital.ch/de/unternehmen/goldmining-inc/ -) and Fury Gold Mines (- https://www.resource-capital.ch/de/unternehmen/fury-gold-mines-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/
Whether in March, May or later, the gold price will certainly benefit when the first interest rate cut comes. Until then, we are unlikely to see any major jumps in the price of gold. There are still fears of an escalation of the Middle East conflict, which should help the gold price. The economy in China is important for the development of the gold price. And GDP there grew by 5.2% in 2023, even more than the government had assumed. By comparison, economic growth in 2022 was just three percent. Just like economic development, global politics is also a factor that influences the price of the precious metal.
The fact that the price of gold fluctuates is nothing new. When times are uncertain and determined by geopolitical crises, investors and central banks increasingly turn to gold. This was evident during the pandemic and the war in Ukraine, for example. The trade dispute between the USA and China and Brexit pushed up the price of the precious metal in 2019, reaching more than USD 1,500 per ounce at the time. In the last two years, the sharp rise in inflation has made gold more attractive and expensive.
However, inflation is weakening, for example in the UK (although it rose to four percent in December after 3.9 percent in November). And so the Bank of England is also expected to end its cycle of interest rate hikes. The situation is similar in France, the USA and here in Germany. The decline in inflation is not happening in a straight line. Many gold companies have not yet taken part in the jump in the gold price. Investments in GoldMining or Fury Gold Mines, for example, could be worthwhile.
GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - owns a large portfolio of gold and gold-copper properties in the USA, a uranium project and shareholdings in Gold Royalty, U.S. GoldMining and NevGold.
Fury Gold Mines - https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ - is very well financed and has projects in Quebec and Nunavut. The company has a gold platform of several million ounces of gold.
Current company information and press releases from GoldMining (- https://www.resource-capital.ch/de/unternehmen/goldmining-inc/ -) and Fury Gold Mines (- https://www.resource-capital.ch/de/unternehmen/fury-gold-mines-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/
