The victory of the Republicans and Donald Trump is weighing on the gold price. However, it could soon turn upward again.
Although chart analysts see the gold price retreating and the upward trendline broken, upward movements are expected to resume. The US election proceeded calmly, reducing the sense of security needs. This led investors to move away from gold. Looking back at Donald Trump’s term from 2016 to 2020, the gold price rose by nearly 50% during those four years. Today, US national debt is even more severe than it was then, and with the new, returning US President, it could increase significantly. This, combined with the central banks’ gold-buying spree, indicates a rising gold price. Notably, the Fed began an interest rate hike cycle in 2016, whereas today, the Fed is more likely to lower rates, another argument for a strong gold price. Observing the trend of physically-backed gold ETFs, these enjoyed inflows until the end of October, but then holdings started to decline. The direction of this trend will certainly impact the metal’s price.
Should the price of the precious metal continue to fall, it could drop to $2,575 per ounce before rebounding. If that happens, it could present another attractive buying opportunity — perhaps a good idea for Christmas gifts. Gold is always appealing. Those looking for leverage on the gold price will find it in gold companies. Solid gold firms like Collective Mining or GoldMining could be worth considering.
Collective Mining - https://www.commodity-tv.com/ondemand/companies/profil/collective-mining/ - operating in Colombia in gold, copper, silver, and tungsten. At the Guayabales project, up to 8.18 grams of gold equivalent per ton of rock were recently identified.
GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - holds gold and copper assets in projects across South and North America. Additionally, GoldMining holds shares in Gold Royalty, U.S. GoldMining, and NevGold. Up to over 10 grams of gold per ton of rock have been found at the São Jorge project in the Brazilian state of Pará.
GoldMining (- https://www.resource-capital.ch/de/unternehmen/goldmining-inc/ -) und Collective Mining (- https://www.resource-capital.ch/de/unternehmen/collective-mining-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/
Although chart analysts see the gold price retreating and the upward trendline broken, upward movements are expected to resume. The US election proceeded calmly, reducing the sense of security needs. This led investors to move away from gold. Looking back at Donald Trump’s term from 2016 to 2020, the gold price rose by nearly 50% during those four years. Today, US national debt is even more severe than it was then, and with the new, returning US President, it could increase significantly. This, combined with the central banks’ gold-buying spree, indicates a rising gold price. Notably, the Fed began an interest rate hike cycle in 2016, whereas today, the Fed is more likely to lower rates, another argument for a strong gold price. Observing the trend of physically-backed gold ETFs, these enjoyed inflows until the end of October, but then holdings started to decline. The direction of this trend will certainly impact the metal’s price.
Should the price of the precious metal continue to fall, it could drop to $2,575 per ounce before rebounding. If that happens, it could present another attractive buying opportunity — perhaps a good idea for Christmas gifts. Gold is always appealing. Those looking for leverage on the gold price will find it in gold companies. Solid gold firms like Collective Mining or GoldMining could be worth considering.
Collective Mining - https://www.commodity-tv.com/ondemand/companies/profil/collective-mining/ - operating in Colombia in gold, copper, silver, and tungsten. At the Guayabales project, up to 8.18 grams of gold equivalent per ton of rock were recently identified.
GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - holds gold and copper assets in projects across South and North America. Additionally, GoldMining holds shares in Gold Royalty, U.S. GoldMining, and NevGold. Up to over 10 grams of gold per ton of rock have been found at the São Jorge project in the Brazilian state of Pará.
GoldMining (- https://www.resource-capital.ch/de/unternehmen/goldmining-inc/ -) und Collective Mining (- https://www.resource-capital.ch/de/unternehmen/collective-mining-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/
