Monetary policy decisions will drive gold prices

The gold price rose by a good 15 percent in 2023 in US dollar terms. In euros, it was still around eight percent. And this despite rising interest rates. A new all-time high of USD 2,135 per ounce of gold was even reached. All eyes are now on the ECB and the Fed. Although President Christine Lagarde of the European Central Bank called discussions about interest rate cuts premature, she was more positive about the inflation trend. The gold price (in euros) did not move much as a result. The situation in the USA is even more important. The timing of the interest rate cut is more significant here, as the US capital market is significantly larger than the European one. When it comes to gold demand, China is always of central interest. Here, it is important to observe how the economy develops.

In any case, even if China’s economy is weakening, gold is in demand. In December 2023, China imported around 50 tons of gold net. This is the highest figure since February. Overall, gold imports from Hong Kong were at a five-year high last year. Compared to 2022, demand for gold rose by around nine percent in 2023. Bars and coins in particular enjoyed increasing popularity, as did gold ETFs.

According to the China Gold Association, gold jewelry consumption rose by almost eight percent in 2023. Purchases of gold bars and coins rose by almost 16%. China’s middle class in particular seems to be keen to preserve wealth. The yuan was also weak, and the real estate sector gave cause for concern. This safeguarding of assets led to the record high in gold imports in China.

In this country, gold investors should also look at gold companies and gold royalty companies such as Gold Royalty or Osisko Gold Royalties. With these royalty companies, investors receive a share in a variety of royalties and precious metal purchases.

Gold Royalty – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ – is focused on North and South America.

Osisko Gold Royalties – https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ – generated record revenues in 2023.

Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -) and Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -).

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