Gold - the prospects for higher prices are not that bad

Gold - the prospects for higher prices are not that bad

A strong US dollar and higher yields have hurt the price of gold.

In view of the new US president's tariff policy, investors have scaled back expectations of interest rate cuts by the Fed in 2025. Even if the rate cuts turn out to be smaller than previously assumed, monetary policy should be eased further. And this will curb the strength of the US dollar and thus benefit the gold price. Currently, the Fed is mostly expected to cut interest rates in December, March and June. Rising inflation caused by the tariff policy could then lead to a pause in interest rate cuts. Whether the immense budget deficit in the US can be improved by higher tariff revenues is more than questionable. And concerns about US government finances should support the price of gold. There is also still a risk that the US will slide into recession next year. The price of the precious metal does not always rise when a recession occurs, but it often does. This is because investors then increasingly turn to gold as a safe haven. In the medium to long term, there is a lot to be said for a strong gold price. In addition to ongoing geopolitical disputes, there is the threat of escalating trade wars and rising US debt. It is generally assumed that central banks will continue to eagerly buy gold. India, Poland and Hungary have recently been particularly keen to buy gold. It will be interesting to see when China will start buying gold again, as it has suspended gold purchases since May. After all, price setbacks should encourage more buying again. If the gold price is extremely high, this will deter some from buying and lead to profit-taking. As countries such as China want to become less dependent on currency reserves - just think of the Russia sanctions, when reserves in foreign currencies were frozen - it can be assumed that China will also turn to buying gold again. Gold in physical form and the stocks of gold companies are therefore also a good option now.

Calibre Mining - https://www.commodity-tv.com/ondemand/companies/profil/calibre-mining-corp/ - owns mines in the USA and Nicaragua, is a medium-sized gold producer and is also debt-free. A pleasing gold production of 230,000 to 240,000 ounces is expected for the full year 2024.

Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ - is focusing on copper and precious metals in South America. The flagship project is located in the eastern foothills of the Andes in Peru and even contains visible gold.

Current company information and press releases from Calibre Mining (https://www.resource-capital.ch/en/companies/calibre-mining-corp/ ) and Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-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.

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