The war in Israel is driving up the price of gold.
Gold as a safe haven is more in demand again. Hedge funds had turned their backs on the gold market because bond yields have risen, which usually puts pressure on the gold price. Asset managers had reduced their gross speculative long positions in Comex gold futures. At the same time, short positions have increased. Thus, the rise in the dollar and yields has triggered a fund sell-off in precious metals.
Caused by rising geopolitical tensions, short covering action occurred. However, the last time gold was this bearish, it began to turn back up from around US$1,600. It then reached the US$2,000 per ounce gold level again. In recent years, net short positions have marked the bottom of the gold market. In the process, each market low was higher than the next. If the gold price does not buckle again, as expected by some market participants, then there should be covers that drive the gold price to record highs.
In terms of price, gold has held the critical mark of over 1,800 U.S. dollars. This should provide the potential for a sustained rally. Another point is that the bond market could see a turning point, i.e. a decline, and this would also pave the way for higher gold prices. While bond yields still have room to rise, the inflection point seems close.
The third point is that two Fed officials have sprinkled hints of a pause in interest rates. The FedWatch tool now shows just over a 25 percent chance of higher rates at the end of the year. Now one could think of gold investments, for example in the stocks of Victoria Gold or Karora Resources.
Victoria Gold - https://www.commodity-tv.com/ondemand/companies/profil/victoria-gold-corp/ - has been producing gold at its Yukon-based Dublin Gulch gold property since 2019. In the current year, Victoria Gold has already produced nearly 125,000 ounces of gold.
Karora Resources - https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ - is also pleased with the production figures of its two gold mines in Western Australia. The mines delivered more than 120,000 ounces in the first three quarters of 2023.
Current corporate information and press releases from Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -) and Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-corp/ -).
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/
Gold as a safe haven is more in demand again. Hedge funds had turned their backs on the gold market because bond yields have risen, which usually puts pressure on the gold price. Asset managers had reduced their gross speculative long positions in Comex gold futures. At the same time, short positions have increased. Thus, the rise in the dollar and yields has triggered a fund sell-off in precious metals.
Caused by rising geopolitical tensions, short covering action occurred. However, the last time gold was this bearish, it began to turn back up from around US$1,600. It then reached the US$2,000 per ounce gold level again. In recent years, net short positions have marked the bottom of the gold market. In the process, each market low was higher than the next. If the gold price does not buckle again, as expected by some market participants, then there should be covers that drive the gold price to record highs.
In terms of price, gold has held the critical mark of over 1,800 U.S. dollars. This should provide the potential for a sustained rally. Another point is that the bond market could see a turning point, i.e. a decline, and this would also pave the way for higher gold prices. While bond yields still have room to rise, the inflection point seems close.
The third point is that two Fed officials have sprinkled hints of a pause in interest rates. The FedWatch tool now shows just over a 25 percent chance of higher rates at the end of the year. Now one could think of gold investments, for example in the stocks of Victoria Gold or Karora Resources.
Victoria Gold - https://www.commodity-tv.com/ondemand/companies/profil/victoria-gold-corp/ - has been producing gold at its Yukon-based Dublin Gulch gold property since 2019. In the current year, Victoria Gold has already produced nearly 125,000 ounces of gold.
Karora Resources - https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ - is also pleased with the production figures of its two gold mines in Western Australia. The mines delivered more than 120,000 ounces in the first three quarters of 2023.
Current corporate information and press releases from Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -) and Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-corp/ -).
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/
