US Federal Reserve pushes gold price
Although just the U.S. dollar quoted firmer and the yields of U.S. bonds have risen, this could not shake the strength of the gold price. As the Fed announced, it expects the key interest rate to remain close to zero until 2023. The Fed also expects inflation to rise significantly, to around 2.4 percent in the USA.
For the gold price, this should mark the way up. Even if bond yields (ten-year, U.S.) are around 1.7 percent, the real interest rate will still be negative given the expected inflation. Especially if inflation increases even more significantly in the coming months. A new all-time high for gold would therefore not come as a surprise.
If the gold price rises, the values of the gold companies usually rise as well. Currently, this could already be seen in the heavyweights of the industry, Barrick Gold and Newmont, as well as in the largest gold-backed ETF, the SPDR Gold Trust. So, the Fed announcement and the recently announced $1.9 trillion fiscal package are positives for the gold price.
Enormous government and corporate funding by central banks in the wake of the Corona crisis has led many analysts to raise their gold price forecasts. And given the Fed decision now, it should be worthwhile to stay invested in gold stocks or to invest now.
Bluestone Resources or Tudor Gold would be possibilities here.
Bluestone Resources - https://www.youtube.com/watch?v=nK5ModCMN6k - can expect peak production of 334,000 ounces of gold per year at its Cerro Blanco project in Guatemala, according to a new preliminary economic assessment. At the same time, production costs are low.
Tudor Gold controls four properties (just over 35,000 hectares) in the Golden Triangle in British Columbia. The flagship project is the Treaty Creek project, which is one of the world's largest gold discoveries of the last three decades.
Current corporate information and press releases from Bluestone Resources (https://www.resource-capital.ch/en/companies/bluestone-resources-inc/).
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