Uncertainties regarding trade policy have weakened the US dollar, which is good for gold.
The gold price rally benefited from inflows into gold ETFs that are physically backed. However, this has changed somewhat in recent weeks, with some of the inflows turning into outflows or losing momentum. Overall, the gold price consolidation seems to be attracting buyers, as stocks are recovering. This in turn could strengthen the gold price. Gold futures rose, which is driving the rally again. In addition to the uncertainty surrounding trade policy decisions, the latest economic data was not the best. These include the employment data and the rise in initial jobless claims.
The probability of interest rate cuts in June is low. It remains to be seen whether the Fed will cut interest rates in the longer term after all. This would further weaken the US dollar and increase the attractiveness of gold. After all, if interest rates are low, the opportunity costs of owning gold are reduced. However, for the Fed to change interest rates, sustained economic deterioration is usually necessary. The next FOMC meeting will take place on June 18. The US President's plans for tax cuts and investment in infrastructure could result in increased government deficits. And thus influence the Fed to prevent financing costs from exploding. The Fed currently seems to be worried about stagflation, i.e. weaker economic growth and rising inflation.
In any case, gold has become a popular investment, as it scores highly as an inflation hedge and portfolio diversifier. A few gold shares also belong in a portfolio, for example from Goldshore Resources or Fury Gold Mines.
Goldshore Resources - https://www.commodity-tv.com/ondemand/companies/profil/goldshore-resources-inc/ - is located in Ontario with its advanced Moss Gold Project. It is wholly owned by the company.
Fury Gold Mines - https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ - owns a gold and mineral exploration portfolio totaling over 157,000 hectares in Québec. Agnico Eagle, well known to many, has now invested in Fury Gold Mines.
Current corporate information and press releases from Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -) and Goldshore Resources (- https://www.resource-capital.ch/en/companies/goldshore-resources-inc/ -).
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/
