From a statistical point of view, June is the second worst gold month.
Calculated in euros, the gold price in May reached 1,841.23 euros on the last trading day and thus the highest monthly close ever. In May 2022, the ounce of gold was still at 1,718 euros, i.e. significantly lower. On average, June brings a loss of 0.31 percent. Important for the further development of the gold price are the economic prospects and how it continues with the key interest rates in the USA. The banking crisis, which is not yet out of the world, must not be forgotten. The Fed's interest rate decision has been made, and it will remain at 5.0 to 5.25 percent. The expected pause in interest rates has therefore occurred.
In the run-up, the gold price dropped. And then there's the question of whether there will be an interest rate hike in July and a second one this year. At the moment, it looks that way. In any case, inflation in the U.S. is cooling, albeit very slowly. If there is still inflation between 3.0 and 3.5 percent at the end of the year, then interest rate cuts could be a distant prospect. That's because the inflation target is still at 2 percent. The markets see a 60 percent chance of a 25 basis point rate hike in July. A sustained rise in gold prices is unlikely to occur until there is confidence that the Fed will stop raising interest rates. In May, the Fed had raised rates for the tenth time.
Financial markets are now pricing in more than a 50-50 chance of another rate hike in July or September. If you look at other central banks, such as Australia or Canada, they have taken a break in raising interest rates, but then raised them again. This could also be the Fed's intention. But the day of the interest rate cuts will come and as a gold fan you could position yourself in stocks like Karora Resources or Chesapeake Gold.
Karora Resources - https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ - achieved record production at its two Western Australian mines in the first quarter of 2023. Full-year 2023 production is expected to grow to 145,000 to 160,000 ounces of gold.
Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - is active in North and South America. The flagship Metates project in Durango contains gold, silver and zinc. It is one of the largest undeveloped gold and silver deposits in the world.
Current corporate information and press releases from Karora Resources (- https://www.resource-capital.ch/en/companies/karora-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/
Calculated in euros, the gold price in May reached 1,841.23 euros on the last trading day and thus the highest monthly close ever. In May 2022, the ounce of gold was still at 1,718 euros, i.e. significantly lower. On average, June brings a loss of 0.31 percent. Important for the further development of the gold price are the economic prospects and how it continues with the key interest rates in the USA. The banking crisis, which is not yet out of the world, must not be forgotten. The Fed's interest rate decision has been made, and it will remain at 5.0 to 5.25 percent. The expected pause in interest rates has therefore occurred.
In the run-up, the gold price dropped. And then there's the question of whether there will be an interest rate hike in July and a second one this year. At the moment, it looks that way. In any case, inflation in the U.S. is cooling, albeit very slowly. If there is still inflation between 3.0 and 3.5 percent at the end of the year, then interest rate cuts could be a distant prospect. That's because the inflation target is still at 2 percent. The markets see a 60 percent chance of a 25 basis point rate hike in July. A sustained rise in gold prices is unlikely to occur until there is confidence that the Fed will stop raising interest rates. In May, the Fed had raised rates for the tenth time.
Financial markets are now pricing in more than a 50-50 chance of another rate hike in July or September. If you look at other central banks, such as Australia or Canada, they have taken a break in raising interest rates, but then raised them again. This could also be the Fed's intention. But the day of the interest rate cuts will come and as a gold fan you could position yourself in stocks like Karora Resources or Chesapeake Gold.
Karora Resources - https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ - achieved record production at its two Western Australian mines in the first quarter of 2023. Full-year 2023 production is expected to grow to 145,000 to 160,000 ounces of gold.
Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - is active in North and South America. The flagship Metates project in Durango contains gold, silver and zinc. It is one of the largest undeveloped gold and silver deposits in the world.
Current corporate information and press releases from Karora Resources (- https://www.resource-capital.ch/en/companies/karora-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/
