Breather in the gold bull market

Breather in the gold bull market

The Republican victory and Donald Trump's victory are weighing on the gold price. But it could soon turn around again.

Chart technicians see the gold price retreating, the upward trend line has been broken, but upward movements can then be expected again. The US election was calm, so the need for security declined. As a result, investors tended to turn away from gold. Looking back at Donald Trump's term in office from 2016 to 2020, it is striking that the price of gold rose by almost 50 percent during these four years. Today, the US national debt is even more dramatic than it was back then and with the new, old US president, it could well rise significantly higher still. This, together with the central banks' gold-buying spree, argues for a rising gold price. Incidentally, the Fed began a cycle of interest rate hikes in 2016, while today the Fed is cutting interest rates, which is another argument for a strong gold price. Looking at the performance of gold ETFs physically backed by gold, they enjoyed inflows until the end of October. However, holdings then fell. What happens next in this area will certainly have an impact on the price of the precious metal.

And if the price of the precious metal continues to fall, the price could drop to USD 2,575 per troy ounce until it rises again. But if this happens, it will also pass and offer entry opportunities. Perhaps a good idea when it comes to Christmas presents. Gold is always beautiful. Anyone looking for leverage on the gold price will find it among the gold companies. Solid gold companies such as Collective Mining or GoldMining come to mind.

Collective Mining - https://www.commodity-tv.com/ondemand/companies/profil/collective-mining/ - is active in the gold, copper, silver and tungsten sectors in Colombia. The Guayabales project has currently identified up to 8.18 grams of gold equivalent per tonne of rock.

GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - owns gold and copper in its projects in South and North America. GoldMining also owns shares in Gold Royalty, U.S. GoldMining and NevGold. At the São Jorge project in the Brazilian state of Pará, up to a good 10 grams of gold per tonne of rock were found.

Current company information and press releases from GoldMining (https://www.resource-capital.ch/en/companies/goldmining-inc/ ) and Collective Mining (https://www.resource-capital.ch/en/companies/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.

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