Golden opportunities for 2019
This will be due to the end of the FED interest rate hike cycle and the associated depreciation of the US dollar. Because when the US dollar is weak, the price of gold usually rises. In any case, investors are looking forward to the end of the FED interest rate hikes. The last time this happened, between 2004 and 2006, the gold price went up almost eight months before the last rate hike. Should this development repeat itself, we should be able to observe a rising gold price at the beginning of 2019.
In 2018, gold prices plummeted in the second quarter and a price recovery then set in in the autumn. This was mainly due to the strong US dollar. US equity markets also rose sharply until September, making gold less attractive. When the stock markets went down in October, gold was rediscovered, as could be seen from the rising price.
Geopolitical uncertainties and crises will continue to accompany us, see Brexit or the Italian debt crisis. All this should help the price of gold to rise. Analysts at Commerzbank expect the price of this precious metal to rise around mid-2019. They forecast 1,350 US dollars per troy ounce of gold by the end of 2019.
Demand from China and India is important for the future development of the gold price. Together they account for more than half of the world's demand for physical gold. The end of the FED interest rate hikes should also have an effect here. A weaker US dollar should ensure a rise in demand for gold in Asia.
If you want to bet on gold, you can take a look at the gold companies such as Caledonia Mining or Cardinal Resources. Caledonia Mining - https://www.commodity-tv.net/c/search_adv/?v=298787 - shares the rights to the Blanket mine in Zimbabwe with local investors and thus has the full support of the local population. In 2018 a total of 54,000 to 56,000 ounces of gold will be mined. By 2021, production is expected to increase to approximately 80,000 ounces per year.
Cardinal Resources - https://www.commodity-tv.net/c/search_adv/?v=298772 - also has two gold projects in Africa, Ghana. The Bolgatanga Project and Subranum Project are adjacent to other gold mines and in a granite-greenstone belt.
Current company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp.html).
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