Gold against currency weakness
The US dollar is expected to weaken, according to US President Donald Trump, and governments and central banks are flooding the financial system with liquidity. The devaluation race of the leading world currencies is already underway. This is leading to a rising gold price, even if it may go downhill in the meantime. The President of the European Central Bank, Christine Lagarde, also advises European governments to continue to rely on high spending. In addition, there is the fear factor caused by the Corona pandemic.
Also, in the USA interest rates are kept down and money is printed. The debts of the USA are now an enormous 137 percent of the gross domestic product. The negative real interest rates will continue to accompany us for a long time to come. All this should give positive impulses to precious metals, especially gold.
How the elections in the USA will affect the gold price is also hotly debated. When the current president was elected four years ago, the price of gold went up by about USD 150. Should Joe Biden emerge as the winner of the election campaign, then, according to the investment bank Goldman Sachs, the US dollar will weaken. But no matter who wins, inflation and debt will continue to rise.
If the global economy continues to improve and the pandemic is under control, investor demand is expected to remain high. Thus, in the long term, the gold price knows only one way - upwards. So, let's take a quick look at solid gold companies like Trillium Gold Mines or Karora Resources.
In the Red Lake mining district, Trillium Gold Mines is developing gold properties. The portfolio includes a total of six projects in prime gold districts.
Karora Resources produces gold at its two gold mines in Western Australia. Beta Hunt contains high grade gold and additional nickel.
Recent corporate news and press releases from Trillium Gold Mines (https://www.resource-capital.ch/en/companies/trillium-gold-mines-inc/) and Karora Resources ( https://www.resource-capital.ch/en/companies/karora-resources-inc/).
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