US dollar loses attractiveness, gold gains

As a reserve currency, the U.S. dollar is visibly losing importance. What is currently affecting gold and silver prices is probably also the news that China had to announce negative economic data. Consumer demand is weakening and has pushed China into deflationary territory. This is the first time this has happened in about two years. So producer and consumer prices are falling. Although the pandemic has also ended in the Middle Kingdom, the Chinese economy is not yet recovering. Export demand is falling and there are still problems in the real estate market. Inflation is not a good scenario, but neither is deflation. Because if deflation lasts longer, corporate profits will fall. But the Chinese government has already announced that it will counteract deflation.

So the gold and silver prices are not having an easy time of it right now. According to chart technicians, this could be the second part of a correction. Should the gold price fall below the June low of 1,892 U.S. dollars, then a price of only 1,840 U.S. dollars would also be possible. This should then be followed by a significant recovery. For the gold price to rise strongly again, the hurdle at 1,959 U.S. dollars must be exceeded from a chart-technical perspective. Gold investments should be understood as medium to long-term investments. Thus, setbacks can be waited for without much stress. If one looks around at the gold and silver companies, Discovery Silver or Fury Gold Mines, for example, are appealing. Discovery Silver (https://www.commodity-tv.com/ondemand/companies/profil/discovery-silver-corp/) is active in the silver country Mexico. The company's Codero project is located in Chihuahua. Fury Gold Mines (https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/) is in the mining business in Nunavut and Quebec and also owns a large block of shares in Dolly Varden Silver.

Current corporate information and press releases from Fury Gold Mines (https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/)  and Discovery Silver (https://www.resource-capital.ch/en/companies/discovery-silver-corp/).

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