The power of gold

Gold ignores the strength of the US dollar and rushes from one record to the next.

Even if the US dollar and bond yields are rising, this is not affecting the price of gold at the moment. On the contrary, technical analyses point to new records. The US dollar has risen, not only against the euro, but also against the pound and the franc. Gold has barely reacted to this. The massive upward trend of the past two months led to a new all-time high of USD 2,431. This was followed by a brief correction, then another upward movement. Chart technicians are forecasting that gold could rise to USD 2,460 and USD 2,474 per ounce. A further correction would then be possible. However, if an ounce of gold rises above USD 2,474, a price of USD 2,545 could also be seen quickly.

Of course, there are also doubters when it comes to the gold price. Last month, for example, the German Commerzbank spoke of the puzzling strength of gold. The forthcoming interest rate cuts had already been anticipated. They had also turned out to be very high. In addition, inflation in the US is quite stubborn, which could affect the prospects for interest rate cuts. The fact is that things can always go down from time to time. However, gold is a proven means of diversification, especially in bad times.

Drivers for the precious metal are usually financial crises, a weak US dollar or geopolitical disputes and uncertainties. There is enough of the latter right now. Gold is simply a crisis currency. The US dollar is not currently weak and there is no real financial crisis. There are no poorly performing stock markets or low interest rates at the moment either. Nevertheless, the price of gold is rushing from one high to the next. Even though the precious metal pays neither interest nor dividends. Investors and central banks are now backing gold. The shares of gold companies such as Fury Gold Mines or Osisko Development are also an option for investors.

Fury Gold Mines – https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ – has high-quality projects in Quebec and Nunavut as well as a large block of shares in Dolly Varden Silver.

Osisko Development – https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ – is developing a gold project in Canada, one in the USA and one in Mexico.

Current corporate information and press releases from Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -) and Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-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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