Gold price benefits from fear
According to JPMorgan Chase & Co. the chances are 50 to 50 that the USA will fall into the recession trap in the next two years. Banking experts expect US growth to slow from 2.9 to 2.6 percent and core inflation to pick up to 2.5 percent. This could put the US close to late inflation overruns. Investment in gold would definitely support this development.
In addition, there are other scenarios that could drive the gold price higher. Heavy gold purchases from various central banks and rising demand from emerging markets could do the rest.
From the point of view of the seasonality of gold, the price of gold is in the phase - usually from the beginning of July to mid-January - in which it is rising. The reason given for this is the purchases made by the jewellery industry for the Christmas business. In 2018 the seasonality did not work so well so far. At the beginning of the year, the price of gold still pleased investors, but from May onwards it went down.
It is unclear how the gold price will develop in the short term. Gold is and remains attractive in the medium to long term, as are the shares of gold companies such as US Gold or Bluestone Resources.
US Gold - https://www.commodity-tv.net/c/search_adv/?v=298583 - focuses on the development and exploration of gold projects in the USA. The Keystone project in Nevada, located in the gold-rich Cortez Trend, and the Copper King project in Wyoming are particularly worth mentioning. An early start of production in the projects should help the company to be successful.
At Bluestone Resources - https://www.commodity-tv.net/c/search_adv/?v=298585, the Cerro Blanco gold project is convincing. Located in Guatemala, an estimated nearly one million ounces of gold and more than three million ounces of silver are present in the ground of the project. In addition, Bluestone Resources owns a geothermal project in Guatemala which already has a license to build and operate.
Current corporate information and news releases from US Gold (https://www.resource-capital.ch/en/companies/us-gold-corp.html) and Bluestone Resources https://www.resource-capital.ch/en/companies/bluestone-resources-inc.html).
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