Although it may look like a year of boring prices, this does not equate to a boring market. This year, gold prices will align with the direction of the U.S. dollar, Fed policy and geopolitical crises. The Fed’s new monetary cycle is already priced in. Crises, such as the one currently unfolding between Russia and Ukraine, as well as negative real interest rates that will continue for a long time, will provide a tailwind for the gold price. The European Central Bank is also changing its stance and emerging markets are recovering, which should weaken the US dollar. In addition, there are domestic problems in the U.S., the competing euro and the debt ceiling rising again.

The U.S. Federal Reserve is expected to raise interest rates four to five times this year. It is not yet clear how aggressively the Fed will proceed. Inflation and rising prices are to be fought. If the rate hikes are violent, this would sharply increase yields. But in the process, i.e., if inflation is pushed back sharply, there is a risk that the economic recovery will fall by the wayside. Two or three rate hikes would also be possible. But even the Fed’s tightening program will not be able to suppress negative real interest rates. Despite tightening and interest rate hikes, it is not foreseeable that real bond yields on two- to ten-year bonds will soon move to a positive level. Thus, the outlook is good for a higher gold price and also for companies with gold.

Torq Resources – https://www.youtube.com/watch?v=_znAPvgkYvM – is located in Chile with prospective projects containing gold and copper (Santa Cecilia, Andrea, Margarita).

GoldMining – https://www.youtube.com/watch?v=gofefXhUHKY – has projects containing gold and copper in North and South America. In addition, GoldMining has established a subsidiary, Gold Royalty, a royalty company.

Current corporate information and press releases from Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -) and GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-inc/ -).

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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