Long-term debt of the US government and gold price
The price of gold is influenced by many factors.
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Fitch Rating has downgraded the U.S. long-term debt from "AAA" to "AA+." Risk aversion sentiment in the market appears to be on the rise. The yield on ten-year bonds is now back above four percent. At the same time, the U.S. dollar has strengthened. So even though the gold price is facing headwinds, it has held up quite well. And according to the analysis of industry experts, gold is outperforming the equity markets. The growing mountains of debt in the U.S. may well increase in drama. Investors should increasingly realize that gold is an excellent store of value. This should only be a matter of time. After all, the U.S. debt cannot remain without consequences; 30 trillion U.S. dollars is not a small amount, after all. According to Fitch, the U.S. deficit will rise by 6.9 percent of GDP in 2025. Gold will be a safe haven as soon as the economic situation in the USA stabilizes.
When the same downgrade occurred after the 2008 financial crisis in 2011 as is currently the case, the price of gold went up significantly. And it led to the all-time high of more than US$1,900 at the time. At that time, the Fed was not raising interest rates the way it is today. Nevertheless, speaking if bond yields and the U.S. dollar continue to rise, then this could provide a headwind for gold. But there are also analyst voices like those of TD Securites, who see a gold price of 2,100 US dollars for the end of 2023. Gold shares are always a good investment, such as those of Revival Gold or Osisko Development.
Revival Gold - https://www.commodity-tv.com/ondemand/companies/profil/revival-gold-inc/ - is handling exploration and development of the Beartrack-Arnett property in Idaho. This is the largest formerly producing property in Idaho.
Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ - operates in Mexico, USA and Canada (Cariboo gold project in British Columbia, Tintic project in Utah, San Antonio gold project in Mexico).
Current corporate information and press releases from Osisko Development (https://www.resource-capital.ch/en/companies/osisko-development-corp/ ).
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