Gold price defiant
Although the fight against inflation in the USA is not yet really succeeding, this can hardly affect the gold price, even if the planned interest rate cuts take a little longer.
In any case, according to Fed Chairman Powell, interest rate hikes are not in sight. With this positioning, the Fed Chairman created a positive mood on the stock markets. The majority of investors expect the Fed to cut interest rates for the first time in July. If inflation continues to fall, a second rate cut could be postponed until the end of the year.
Central banks bought more gold than ever before in the first quarter of the year, around 290 tons. Although demand for jewelry was somewhat weaker in the first quarter of 2024, it was higher in US dollar terms than at any time since 2013. China was very strong in terms of gold bars and coins, and India and Turkey also increased their purchases again. The West cannot keep up in terms of buying propensity. According to the World Gold Council, central banks around the world hold almost 36,000 tons of gold. According to a survey conducted last year, 24 percent of central banks want to increase their gold reserves. This is because gold stands for independence from the US dollar and protection from sanctions. 2023 was the year of the highest global demand for gold, including central banks. Almost 4,500 tons of gold were in demand last year. Even if the price of gold falls slightly, for example due to profit-taking, many prominent banks such as BayernLB expect the price of gold to rise over the course of the year. Gold investments include the stocks of gold companies.
Fury Gold Mines - https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ - has high-quality projects in Quebec and Nunavut as well as a large block of shares in Dolly Varden Silver.
Karora Resources - https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ - will merge with Westgold Resources, to the benefit of shareholders. The result will be a medium-sized gold producer operating solely in Western Australia.
Current corporate information and press releases from Karora Resources (https://www.resource-capital.ch/en/companies/karora-resources-inc/ ) and Fury Gold Mines (https://www.resource-capital.ch/en/companies/fury-gold-mines-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.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer
