Gold has found a bottom
According to analysts at Berenberg Bank, the price of the precious metal has stabilized. On the one hand, real interest rates have gone down slightly again. On the other hand, the weakness of the U.S. dollar had a supportive effect. The outflows of the gold ETFs have gone down significantly. One may be curious about the report of the World Gold Council on the demand for gold, which is still to come this week.
Further gold demand could come from the central banks. Especially in China, where the economy is recovering significantly, official gold purchases could again experience a new upswing. Because the central banks, straight of China or also Russia want to move away from Fiat currencies such as US dollar or euro approximately. Therefore, these central banks like to flirt with an increase in their gold reserves. This, in addition to increased consumer demand in China, will boost the gold price in the coming years. China's large holdings of U.S. Treasuries have been declining since 2013. Trade disputes with ex-President Trump and the imposition of tariffs will further fuel a desire in China's central bank to diversify away from the U.S. dollar.
The fact that gold is in demand can currently also be seen in a significant increase in interest in gold futures. Both large speculators and small speculators have regained their optimism. And so gold companies are also likely to move back into the focus of investors. These include Tarachi Gold and Revival Gold.
Revival Gold is active in Idaho on the formerly producing Beartrack-Arnett property. This was the largest gold mine in Idaho and even today there are said to be millions of ounces of gold waiting in the ground. Mineralization at Arnett is still open in all directions.
Tarachi Gold - https://www.youtube.com/watch?v=AaOfkA_AA2s - holds large concessions in Mexico in the Sierra Madre. Consistent and very good gold grades have already been returned by drilling.
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