The Fed and the ECB have done so, as have the central banks in Australia and Canada. Interest rates were also raised in the UK and Norway. Opinions are divided on whether or not there will be a recession in the USA. Some analysts see a recession coming and expect the Fed and the ECB to raise interest rates only further in July. In the eurozone, core inflation actually rose from 5.3 to 5.5 percent in June. The term core inflation generally defines the inflation rate excluding the energy sector and food. If there is a recession, then unemployment goes up and core inflation should go down. And if this is the case by next year at the latest, interest rate cuts are within reach. This weakens bond yields and then strengthens the gold price. However, if inflation falls too little, inflation fears would increase again and thus strengthen the gold price. Another reason that would be positive for the gold price is an even longer war in Ukraine. And the majority of observers of the war are probably assuming that this will happen.
When it comes to the purchasing behavior of central banks, it is striking that China also buys when prices are high. The Chinese central bank's gold reserves increased by eight tons in April, and by as much as 18 tons in March. The background to this is probably the effort to hedge against sanctions concerning Russian foreign currency reserves with higher gold reserves. And there are also no signs that the tensions between China and the USA are easing. Also, for private investors it is not recommended to disregard gold positions, for example an investment in Condor Gold or Calibre Mining.
Condor Gold - https://www.commodity-tv.com/ondemand/companies/profil/condor-gold-plc/ - is focused on three projects in Nicaragua. The La India project (100 percent) covers 588 square kilometers and covers 98 percent of the historic La India gold mining district.
Calibre Mining - https://www.commodity-tv.com/ondemand/companies/profil/calibre-mining-corp/ - is a mid-tier gold producer, focused on North and South America.
Latest corporate information and press releases from Calibre Mining (https://www.resource-capital.ch/en/companies/calibre-mining-corp/ ).
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