In euro terms, the precious metal traded at a price of 1,666 euros, the highest price since September 2020. The quarrels on the Russian-Ukrainian border are certainly price-driving factors. In addition, there is the publication of minutes of the latest interest rate meeting of the Fed. In March, it is to go up with 0.25 percentage points in interest rates. Generally, the double had been expected, so this probably gave the gold price another push upward. And gold demand from Europe and the U.S. is extremely strong. The Americans, for example, bought a record amount last year.

Looking at the inflation figures, the U.S. has reached another 40-year high of 7.5 percent overall inflation. That has many wondering why the price of gold hasn’t trended higher in 2021. Experts point out that the price of gold needs inflation of at least seven percent to really move. This is now the case in the U.S., whereas in 2021 the inflation figures reported by the U.S. had not yet reached this magic limit. Now the price of gold seems to be responding to inflation. Gold is an inflation hedge because it diversifies the portfolio and the assets. At the same time, the price of the precious metal does not follow the consumer price index in lockstep.

The purchasing power of gold is stable, time shows. Also, the latest economic data in the manufacturing sector from the U.S. have disappointed. Perhaps now is the right time to think about investments in gold companies that score with leverage to the gold price. For example, there is CanaGold Resources or Chesapeake Gold.

CanaGold Resources – https://www.youtube.com/watch?v=mKhndWB3VVc – New Polaris gold project in British Columbia even contains visible gold. The well-financed company also has projects in Nevada and Canada.

Chesapeake Gold – https://www.youtube.com/watch?v=Njv4DJ24bHQ – owns the flagship Metates project in Mexico, one of the largest undeveloped gold-silver properties in the US.

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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