Many factors play a role. Despite the high price, the attractiveness of the precious metal is increasing.
The euro is currently weakening, which is benefiting the gold price in euros. The third interest rate cut by the European Central Bank has certainly contributed to this. A further rate cut could follow in December, as inflation in the eurozone is falling and the economic data is not the best. In US dollar terms, the price of gold has also reached a new record high of more than USD 2,700 per ounce. This was achieved despite the appreciation of the US dollar, as falling interest rates are actually driving up the price of the precious metal. Uncertainties are likely to continue to benefit the gold price. Even if the economy has tried to learn from crises and overcome them after the global pandemic, economic upheavals are still to be expected. This is because factors such as climate change, crises, geopolitical fragmentation, digitalization and artificial intelligence act as transformative forces that create uncertainty.
In the US, the upcoming presidential election and the possible return of Donald Trump could also cause turmoil. This is because inflation could rise again with Trump as president. After all, he has declared that he wants to be involved in the Fed's interest rate decisions. With regard to the development of the gold price, the focus is always on China. The country is expecting economic growth of five percent. China now wants to increase its debt significantly, six trillion yuan (around 850 billion US dollars) within three years, in order to stimulate the weakening economy. This action should at least stabilize growth and thus also fuel gold purchases. In the longer term, investors should also do well with gold companies. GoldMining or Tudor Gold would come into question.
GoldMining's - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - projects contain gold and copper and are located in North and South America. The company's portfolio also includes shares in Gold Royalty, U.S. GoldMining and NevGold.
Tudor Gold - https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ - also has gold and copper in its Treaty Creek project. The latest investigations revealed up to almost eleven grams of gold equivalent per tonne of rock.
Current company information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-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/.
The euro is currently weakening, which is benefiting the gold price in euros. The third interest rate cut by the European Central Bank has certainly contributed to this. A further rate cut could follow in December, as inflation in the eurozone is falling and the economic data is not the best. In US dollar terms, the price of gold has also reached a new record high of more than USD 2,700 per ounce. This was achieved despite the appreciation of the US dollar, as falling interest rates are actually driving up the price of the precious metal. Uncertainties are likely to continue to benefit the gold price. Even if the economy has tried to learn from crises and overcome them after the global pandemic, economic upheavals are still to be expected. This is because factors such as climate change, crises, geopolitical fragmentation, digitalization and artificial intelligence act as transformative forces that create uncertainty.
In the US, the upcoming presidential election and the possible return of Donald Trump could also cause turmoil. This is because inflation could rise again with Trump as president. After all, he has declared that he wants to be involved in the Fed's interest rate decisions. With regard to the development of the gold price, the focus is always on China. The country is expecting economic growth of five percent. China now wants to increase its debt significantly, six trillion yuan (around 850 billion US dollars) within three years, in order to stimulate the weakening economy. This action should at least stabilize growth and thus also fuel gold purchases. In the longer term, investors should also do well with gold companies. GoldMining or Tudor Gold would come into question.
GoldMining's - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - projects contain gold and copper and are located in North and South America. The company's portfolio also includes shares in Gold Royalty, U.S. GoldMining and NevGold.
Tudor Gold - https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ - also has gold and copper in its Treaty Creek project. The latest investigations revealed up to almost eleven grams of gold equivalent per tonne of rock.
Current company information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-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/.
