Normally, corrections in the gold price amount to eight to ten percent, and somewhat more for gold mining companies.
Experts do not currently expect a sharp correction, because the price has not moved far enough for that. When the price of gold rises, demand on the futures exchanges usually increases as well. When the gold price was above 2,000 U.S. dollars per ounce, about three quarters of a year ago, there were more than 300,000 contracts a day. Right now, there are less than 200,000 contracts. But a correction could be imminent in this area. The rise in the price of gold would now be due for a pause. Price corrections should be mild, however, because a negative change in fundamentals is not expected. The next Fed meeting is imminent, and the gold price seems to wait, respectively, slight profit-taking can be seen. It is generally expected that the Fed will raise the U.S. key interest rate by 0.25 percent.
Inflation in the U.S. is falling, which gives hope for an end to rising interest rates, which in turn is good for gold. However, in order to bring inflation down to a sustainable low level, the Fed will have to slow down the economy. A recession will probably be accepted in the process. Other factors that argue for sustained high inflation are the expansion of renewable energies, deglobalization and the demographic effect, i.e. the increasing older population. Even if the Fed reiterates the seriousness of interest rate hikes and pushes the gold price down, gold could reach a new all-time high this year, and the overall outlook is excellent. That's where investing in gold companies could prove lucrative, such as Caledonia Mining or Fury Gold Mines.
Caledonia Mining - https://www.commodity-tv.com/play/mining-newsflash-with-caledonia-mining-canada-nickel-skeena-resources-and-labrador-uranium/ - is well established with its Blanket gold mine in Zimbabwe. Last year brought record gold production of more than 80,000 ounces of gold.
Fury Gold Mines - https://www.commodity-tv.com/play/fury-gold-mines-excellent-drill-results-at-percival-well-financed-for-2023/ - is well financed and owns three properties in Nunavut and in Quebec. Very good drill results at the Eau Claire project in Quebec include up to more than 22 grams of gold per ton of rock.
Current corporate information and press releases from Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -) and Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-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/
Experts do not currently expect a sharp correction, because the price has not moved far enough for that. When the price of gold rises, demand on the futures exchanges usually increases as well. When the gold price was above 2,000 U.S. dollars per ounce, about three quarters of a year ago, there were more than 300,000 contracts a day. Right now, there are less than 200,000 contracts. But a correction could be imminent in this area. The rise in the price of gold would now be due for a pause. Price corrections should be mild, however, because a negative change in fundamentals is not expected. The next Fed meeting is imminent, and the gold price seems to wait, respectively, slight profit-taking can be seen. It is generally expected that the Fed will raise the U.S. key interest rate by 0.25 percent.
Inflation in the U.S. is falling, which gives hope for an end to rising interest rates, which in turn is good for gold. However, in order to bring inflation down to a sustainable low level, the Fed will have to slow down the economy. A recession will probably be accepted in the process. Other factors that argue for sustained high inflation are the expansion of renewable energies, deglobalization and the demographic effect, i.e. the increasing older population. Even if the Fed reiterates the seriousness of interest rate hikes and pushes the gold price down, gold could reach a new all-time high this year, and the overall outlook is excellent. That's where investing in gold companies could prove lucrative, such as Caledonia Mining or Fury Gold Mines.
Caledonia Mining - https://www.commodity-tv.com/play/mining-newsflash-with-caledonia-mining-canada-nickel-skeena-resources-and-labrador-uranium/ - is well established with its Blanket gold mine in Zimbabwe. Last year brought record gold production of more than 80,000 ounces of gold.
Fury Gold Mines - https://www.commodity-tv.com/play/fury-gold-mines-excellent-drill-results-at-percival-well-financed-for-2023/ - is well financed and owns three properties in Nunavut and in Quebec. Very good drill results at the Eau Claire project in Quebec include up to more than 22 grams of gold per ton of rock.
Current corporate information and press releases from Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -) and Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-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/
