Gold weakens
A strong US dollar puts pressure on the gold price. There should be some arguments in favour of higher prices
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The debt crisis in Italy is boiling again, as a deficit of 2.4 percent is forecast for next year. Somebody thinks this could trigger a new debt crisis in the EU. This should help the price of gold to rise. At the moment, however, only the Euro has come under pressure.
The FED decisions, always important in this context, now suggest one rate hike for this year, three for 2019 and the last one for 2020. In fact, interest rate hikes in the past have often led to a rise in gold prices. This time it doesn't seem that way. This is probably due to the fact that the inflation rate remains relatively low. Once the brake is released here, this would be a good reason for a price increase of the precious metal and the brake will be released.
If you ask yourself who is currently benefiting from the low gold price, it is mainly the global central banks, especially those in the emerging markets. The reserves of the global central banks are now at a 20-year high of 34,000 tonnes of gold. China, Russia and other emerging markets were the main buyers.
Since the financial crisis of 2008, these countries have been tired of the dominance of the US dollar. Still, the constant and productive purchase of the central banks keeps the ground below the gold price. But if there is more investment and demand and, for example, fund managers buy back the record gold short positions, then gold should rise significantly in price.
Gold is still the tried and tested crisis protection, even though market sentiment towards gold is currently rather negative. For better gold price times one should position oneself early and perhaps think about investing in gold companies such as GoldMining or Nordic Gold.
GoldMining - https://www.commodity-tv.net/c/search_adv/?v=298220 - has a large portfolio of gold and copper projects in North and South America. The projects are located in Canada, USA, Peru, Brazil and Colombia. In addition, there is a 75 percent uranium project in Saskatchewan, Canada, in the Athabasca Basin.
Nordic Gold - https://www.commodity-tv.net/c/search_adv/?v=298584, formerly known as Firesteel Resources, aims to become a medium-sized Scandinavian producer. The Company owns the Laiva gold project in Finland, which is expected to start production in 2018. The infrastructure is excellent and Finland is a very mining friendly country.
Current company information and press releases from GoldMining (https://www.resource-capital.ch/en/companies/goldmining-inc.html) and Nordic Gold (https://www.resource-capital.ch/en/companies/nordic-gold-corp.html).
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