Many experts expect the interest rate reduction cycle in the US to begin in the middle of the year. The gold price should then receive a strong boost.
If the price of gold shows some weakness in the first few months of 2024, investors should not be unsettled. This should only be a short-term trend and the spook should soon be over again. The high gold price at the end of 2023 also invited profit-taking. However, the price of the precious metal should soar to new heights in the second half of the year at the latest. This is because the Fed's interest rate cut phase will come. Gold should be able to defend its status as a safe haven for even longer, as the geopolitical crises continue.
These tensions could increase in the Middle East. There are also problems between China and Taiwan, and therefore between China and the Western world, and the war in Ukraine continues. Much is uncertain, whether there is a threat of recession or perhaps inflation will rise again. What is certain, however, is that gold offers protection for investors.
And it is not only the Fed that is expected to cut interest rates from around the middle of the year. The European Central Bank and the Bank of England will also cut interest rates. These actions should then reduce bond yields, regardless of maturity. When it comes to recessions, it is known from the past that although they can initially push the price of gold down, they usually lead to larger interest rate cuts. This is usually accompanied by a significant increase in the price of gold. Gold and the values of gold companies are therefore part of an investment portfolio. Caledonia Mining or Victoria Gold would be suitable.
Caledonia Mining - https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ - was able to produce around 75,000 ounces of gold at its Blanket gold mine in Zimbabwe last year.
Victoria Gold - https://www.commodity-tv.com/ondemand/companies/profil/victoria-gold-corp/ - is also producing successfully in the Yukon. The Eagle Gold Mine produced almost 167,000 ounces of gold in 2023.
Current company information and press releases from Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-corp/ -) 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/
If the price of gold shows some weakness in the first few months of 2024, investors should not be unsettled. This should only be a short-term trend and the spook should soon be over again. The high gold price at the end of 2023 also invited profit-taking. However, the price of the precious metal should soar to new heights in the second half of the year at the latest. This is because the Fed's interest rate cut phase will come. Gold should be able to defend its status as a safe haven for even longer, as the geopolitical crises continue.
These tensions could increase in the Middle East. There are also problems between China and Taiwan, and therefore between China and the Western world, and the war in Ukraine continues. Much is uncertain, whether there is a threat of recession or perhaps inflation will rise again. What is certain, however, is that gold offers protection for investors.
And it is not only the Fed that is expected to cut interest rates from around the middle of the year. The European Central Bank and the Bank of England will also cut interest rates. These actions should then reduce bond yields, regardless of maturity. When it comes to recessions, it is known from the past that although they can initially push the price of gold down, they usually lead to larger interest rate cuts. This is usually accompanied by a significant increase in the price of gold. Gold and the values of gold companies are therefore part of an investment portfolio. Caledonia Mining or Victoria Gold would be suitable.
Caledonia Mining - https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ - was able to produce around 75,000 ounces of gold at its Blanket gold mine in Zimbabwe last year.
Victoria Gold - https://www.commodity-tv.com/ondemand/companies/profil/victoria-gold-corp/ - is also producing successfully in the Yukon. The Eagle Gold Mine produced almost 167,000 ounces of gold in 2023.
Current company information and press releases from Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-corp/ -) 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/
