The breakout of the resistance line was caused by the US inflation figures published on 10 November. A short price setback is possible, but the way is paved for a further medium-term rise in the gold price, as the chart technicians see it. The next resistance zone is likely to be at around 1,920 US dollars per ounce of gold, and the next at 1,966 US dollars. From a short-term perspective, the chart analysts believe that the USD 1,900 level remains within reach. Even if gold currently costs somewhat less than 1,850 US dollars per ounce, a sideways stabilization can be expected. While the price of the precious metal had not yet managed to regain the 1,800 US dollar mark in October, things are looking much better in November.
Gold experts forecast a gold price approaching the all-time high of August 2020 at 2,089 US dollars. Looking at the annual chart of the gold price, there is an intact long-term upward trend. Thus, gold prices are expected to continue to rise over the long term. We know from history that the biggest gold price increases have come with rising interest rates and even higher inflation rates. Gold prices will strengthen as long as inflation is higher than nominal interest rates. And positive real interest rates will certainly not be upon us for a long time. Too much sovereign debt has piled up, the fourth wave of pandemics is just overtaking us, crisis situations such as at borders dominate the news and supply chain problems will persist for some time. So, there are all kinds of difficulties and problems that cannot be solved so quickly. Gold should therefore continue to be in demand as a hedge.
It is also possible to hedge with the stocks of gold companies, such as Empress Royalty or Trillium Gold Mines.
Empress Royalty is a royalty and streaming company focused on gold and silver with a solid revenue-generating portfolio. Of particular significance is the gold stream agreement regarding the Sierra Antapite mine in Peru.
Trillium Gold Mines - https://www.youtube.com/watch?v=7rLWA5wXDY0 - is engaged in property development and exploration in the Red Lake Mining District in Ontario.
Latest corporate information and press releases from Trillium Gold Mines (- https://www.resource-capital.ch/en/companies/trillium-gold-mines-inc/ -).
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.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/