War in Ukraine as a price driver for gold

The geopolitical situation remains anything but relaxed. The price of gold could rise again.

Nothing is currently more important for commodity prices and especially for gold than the Russia-Ukraine war. The Fed’s interest rate hike could not really stifle the positive gold sentiment. Many in the gold sector therefore believe that it is rather unlikely that the Fed will raise interest rates six more times this year. This is because this could slow down an economic upswing too much. It is precisely because of the fear of a prolonged rise in inflation that gold is once again increasingly coming to the attention of investors as a longer-term investment. A certain volatility in the price of the precious metal must be taken into account.

The massive increase in energy and food prices points to an overall inflation that cannot be fought so easily. The Fed wants to keep inflation under control and presumably lower commodity prices at the same time. But the Fed’s promises are unlikely to have a restrictive effect fast enough to fight inflation. From a chart perspective, the first major resistance for the gold price is at around $1,980 per troy ounce. If the price of the precious metal rises above USD 1,950, it could continue in the direction of USD 2,000 per ounce. And if there is a prolonged period of stagflation, similar to the 1970s, gold could rise much higher in the long term than it is now. Therefore, a portfolio should contain various stocks, but also gold companies such as Tarachi Gold or Revival Gold.

Tarachi Gold – https://www.youtube.com/watch?v=IRnRAFCd8WI – is working on the prospective Tarachi project in the Sierra Madre Gold Belt and a project in Durango acquired in 2021 that is expected to be in production next year.

Revival Gold – https://www.youtube.com/watch?v=adyprQlTlwg – is working on the Beartrack-Arnett project in Idaho. This project was formerly a producing property and appears highly prospective.

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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