Politically uncertain phases continue to drive gold prices
Nobody talks about interest rate hikes anymore. Further reductions are being discussed. The debt mountains of the states are growing. The US dollar is also weakening, and the US real interest rates are going down. In addition, uncertainties such as the US election are creating further upside potential for the price of the precious metal.
The election campaign in the USA is now in the hot phase. A look at the stock market in past election periods shows that share prices have risen sharply in each of the year's periods. Who emerged as the winner, from which party, was irrelevant? Should Donald Trump emerge as the loser from the election campaign, there is a danger that he will struggle with defeat, which could give the American stock market a rollercoaster ride.
In the case of precious metals, many industry insiders also expect volatile prices, but overall, there is a good chance of further gold price highs.
Even though the economy has been recovering from the Corona pandemic since April, although unfortunately not in all professional areas, the economy still needs help. In addition, the world is struggling with increasing numbers of infections. Yields on the bond markets will therefore remain low. This makes shares more attractive. Especially gold shares are now an option.
Notable gold companies include Auryn Resources and Filo Mining.
Auryn Resources has high grade gold and also copper projects in Canada and Peru. Investors should benefit from the planned spin-off of the Peru projects into two new companies, the acquisition of Eastmain Resources and the upcoming financing.
Filo Mining, chaired by Adam Lundin and a member of the Lundin Group of Companies, is developing the Filo del Sol copper-gold-silver property located on the Chile-Argentina border. High mineral grades near surface, characterize the project.
Current company information and press releases from Auryn Resources (https://www.resource-capital.ch/en/companies/auryn-resources-inc/) and Filo Mining (https://www.resource-capital.ch/en/companies/filo-mining-corp/).
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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