Although it sounds irrational, when monetary policy pressures ease, gold should rise in price.
Gold does not earn interest and thus suffers from rising opportunity costs, which means that high interest rates act as a brake, making it difficult for the gold price to rise. This year, the price of gold should have risen, or so people think. After all, there have been enough crises. From supply chain problems, high inflation and recession fears to energy shortages and the Russia-Ukraine war. In U.S. dollars, the economy is expected to contract by around three percent in 2022. In euro terms, on the other hand, the result for the current year will be an increase of around six percent.
But in the new year, gold should shine more again. The pressure from the central banks will weaken and investors will again have gold on their radar as a value preservation vehicle with a protective function. For although everything spoke for gold, the Fed's decisions caused weakness in the price of the precious metal. However, when interest rate phases end, as they have in the past, the picture is better for gold. Successes against high inflation rates should therefore help the gold price back on track in the new year. The Fed and the ECB do not have an easy game.
On the one hand it should not come to an economic disaster, on the other hand however also by the central banks a sign against the inflation is to be set. If one adds the high national debts, which prevail in the euro area and also in the USA, the decisions of the central banks should be in favor of the economy in case of doubt. In the longer term, gold and also its little brother silver are always worth investing in, for example in the stocks of companies such as Tarachi Gold or Viszla Silver.
In Mexico, Vizsla Silver - https://www.youtube.com/watch?v=KehewUd5rVg - owns the Panuco silver-gold project (silver and gold), which will produce in the foreseeable future, as well as the Blueberry project in British Columbia.
Tarachi Gold has two projects in Mexico, Magistral Mill and Tailings in Durango and the Tarachi Project along the Sierra Madre Gold Belt. The projects contain gold, silver, copper and zinc.
Latest corporate information and press releases from Vizsla Silver (- https://www.resource-capital.ch/en/companies/vizsla-silver-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.
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