Last week was not particularly pleasing for gold fans, because prices fell below 1,900 US dollars per ounce. The US dollar was enormously strong, which put pressure on the price of the precious metal. The next meeting of the Fed will take place this week. A rate hike of 50 basis points and the announcement of the start of quantitative tightening is expected. The market has already priced this in. How high the further rate hikes will be is uncertain. The development of the inflation rate will be an influencing factor, as will high energy and food prices in a weakening global economy. Bullish market sentiment is expected for gold by most economists.
Globally, the ongoing war in Ukraine is leading to significant economic consequences. This is because both export grain and energy products. The prices for oil and natural gas will therefore remain high. The high inflation rate also causes the high cost of food. The factors affecting the price of gold are many and they thus cause price volatility, i.e. fluctuating prices. However, this does not change the fundamentally good expectations for the gold price. An aggressive increase in interest rates by the Fed is possible, but this will not be able to change the high energy and food costs. Thus, inflation remains and consequently one may be optimistic for the gold price development in the near future. For an investment, one could think of OceanaGold or Caledonia Mining, two gold producers.
Caledonia Mining - https://www.youtube.com/watch?v=4RUUSVR5FjA - has achieved record gold production of more than 18,000 ounces in the first quarter of 2022 at its Blanket gold mine in Zimbabwe.
OceanaGold - https://www.youtube.com/watch?v=IYhTVvVWDi4 - owns gold mines in the USA, New Zealand and the Philippines. In the first quarter of 2022, production increased by 26 percent compared to the previous quarter.
Current corporate information and press releases from OceanaGold (- https://www.resource-capital.ch/en/companies/oceanagold-corp/ -) and Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-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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