Big banks optimistic for gold price
The trade dispute between China and the USA has eased somewhat. As a result, the price of this precious metal has fallen by around seven percent since the beginning of September. Nevertheless, analysts at major banks such as Goldman Sachs, UBS and Morgan Stanley remain very optimistic.
Goldman Sachs, a US investment bank, continues to expect a gold price of 1,600 US dollars for 2020. The reasons are the political uncertainties that will continue to accompany the gold price and the prospect of a weakening economy. UBS, the major Swiss bank, expects the price of gold to stand at USD 1,600 in the new year. We are eagerly awaiting the next rise in precious metal prices.
The major US bank Morgan Stanley has just announced that it expects gold prices to rise further in 2020. This was due to a lower US dollar. According to Morgan Stanley, this is because higher growth rates can be expected outside the USA.
The strong demand for gold is currently coming not only from institutional investors, but also from many private investors. They all want to hedge their portfolios. The gold holdings invested in the ETC "Xetra Gold" of Deutsche Börse have reached a record level of over 200 tonnes. This represents a value of approximately 8.5 billion euros, also a record.
With a lever, the gold companies naturally win with a rising gold price. So it's time to take a look at these companies, such as Skeena Resources or US Gold.
Skeena Resources operates its Snip and Eskay gold mines in the British Columbia Golden Triangle. Recent drilling at Eskay has returned up to 19.73 grams of gold equivalent. The portfolio also includes the GJ copper-gold porphyry mine.
US Gold owns several projects in Wyoming and Nevada - https://www.commodity-tv.com/play/us-gold-acquisition-of-maggie-creek-pfs-for-keyhole-copper-deposit-in-2020/. Now that the Company has the option to acquire up to 70 percent of the Maggie Creek property, there are two exploration projects with high potential in Nevada. Maggie Creek is in the middle of the Carlin trend, adjacent to a 26-million-ounce gold mine.
Current corporate information and news releases from Skeena Resources (https://www.resource-capital.ch/en/companies/skeena-resources-ltd/) and US Gold ( https://www.resource-capital.ch/en/companies/us-gold-corp/).
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