Investors have scaled back their expectations for interest rate cuts by the Fed in 2025, particularly with a focus on the tariff policies of the new US President. Even if these rate cuts turn out to be less significant than previously thought, monetary policy is still expected to experience further easing. This shift will likely curb the strength of the US dollar, benefiting the price of gold. Current expectations are for rate cuts by the Fed in December, March, and June. However, an uptick in inflation driven by tariff policies could lead to a pause in these rate cuts. Whether the massive US budget deficit can be improved through higher tariff revenues remains highly questionable.
Concerns about US public finances should support the price of gold. The risk of the US slipping into a recession next year also persists. While the price of the precious metal does not always rise during a recession, it often does, as investors return to gold as a safe haven. Medium- to long-term prospects strongly favor a robust gold price. In addition to ongoing geopolitical tensions, escalating trade wars and rising US debt loom as potential issues. It is widely expected that central banks will continue to buy gold aggressively.
Recently, India, Poland, and Hungary have been notable gold buyers. It will be interesting to see when China resumes its gold purchases, as the country halted its buying spree in May. Nonetheless, price pullbacks should encourage more buying. Extremely high gold prices can deter some buyers, prompting profit-taking instead. However, countries like China aim to become more independent of foreign currency reserves—consider, for instance, the freezing of foreign currency reserves due to sanctions on Russia. It is therefore reasonable to expect China to return to gold buying. Gold in physical form and shares in gold mining companies remain strong options even now.
Calibre Mining - https://www.commodity-tv.com/play/calibre-mining-insight-on-q3-2024-figures-and-why-q4-will-be-very-strong/ - operates mines in the US and Nicaragua, positioning itself as a mid-sized gold producer and is debt-free. For the full year 2024, a promising gold production of 230,000 to 240,000 ounces is expected.
Aurania Resources - https://www.commodity-tv.com/play/mining-news-flash-with-aurania-resources-gold-royalty-miata-metals-and-sibanye-stillwater/ - focuses on copper and precious metals in South America. Its flagship project is located in the eastern foothills of the Andes in Peru and even includes visible gold.
For current corporate information and press releases from Calibre Mining (- https://www.resource-capital.ch/de/unternehmen/calibre-mining-corp/ -) and Aurania Resources (- https://www.resource-capital.ch/de/unternehmen/aurania-resources-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/
Concerns about US public finances should support the price of gold. The risk of the US slipping into a recession next year also persists. While the price of the precious metal does not always rise during a recession, it often does, as investors return to gold as a safe haven. Medium- to long-term prospects strongly favor a robust gold price. In addition to ongoing geopolitical tensions, escalating trade wars and rising US debt loom as potential issues. It is widely expected that central banks will continue to buy gold aggressively.
Recently, India, Poland, and Hungary have been notable gold buyers. It will be interesting to see when China resumes its gold purchases, as the country halted its buying spree in May. Nonetheless, price pullbacks should encourage more buying. Extremely high gold prices can deter some buyers, prompting profit-taking instead. However, countries like China aim to become more independent of foreign currency reserves—consider, for instance, the freezing of foreign currency reserves due to sanctions on Russia. It is therefore reasonable to expect China to return to gold buying. Gold in physical form and shares in gold mining companies remain strong options even now.
Calibre Mining - https://www.commodity-tv.com/play/calibre-mining-insight-on-q3-2024-figures-and-why-q4-will-be-very-strong/ - operates mines in the US and Nicaragua, positioning itself as a mid-sized gold producer and is debt-free. For the full year 2024, a promising gold production of 230,000 to 240,000 ounces is expected.
Aurania Resources - https://www.commodity-tv.com/play/mining-news-flash-with-aurania-resources-gold-royalty-miata-metals-and-sibanye-stillwater/ - focuses on copper and precious metals in South America. Its flagship project is located in the eastern foothills of the Andes in Peru and even includes visible gold.
For current corporate information and press releases from Calibre Mining (- https://www.resource-capital.ch/de/unternehmen/calibre-mining-corp/ -) and Aurania Resources (- https://www.resource-capital.ch/de/unternehmen/aurania-resources-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/
