First the gold price weakened, then the surprising start of the war caused gold prices to rise.
Gold, the safe haven, once again lived up to its name. Gold became attractive and attracted many buyers. Previously, rising interest rates, a strong U.S. dollar and the threat of recession put pressure on the price of the precious metal. Now it will be particularly significant whether the conflict will spread to other nations and to the USA. If this were to happen, then rising debt levels due to additional government spending would be expected. The restrictive monetary policy would come to an end. The market has priced all this in. If further developments in the war in Israel now lead to an expansion and influence on other nations, then high interest rates, a strong U.S. dollar and the threat of deflation should take more of a back seat. The bullish factors would prevail and strengthen the price of the precious metal. If the conflict does not expand, then it could go with the gold price again rather in the direction of the north.
If you think about the war in Ukraine, the price of gold rose quickly, but then fell again in subsequent months. This is because the Russia-Ukraine conflict did not extend globally. Today, investors do not seem to want to miss a rally in the gold market. However, if the situation in the Middle East becomes calmer, there is a threat of an interim downtrend in the gold price. Gold investments, however, should be viewed as longer-term investments. It is better to rely on the value preservation function of gold with a longer investment horizon than to chase trends. Gold company values should also be included in gold investments.
A gold producer that has been successful for years is Caledonia Mining – https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ – with its Blanket mine in Zimbabwe. The last quarter brought the company a record gold production of almost 22,000 ounces of gold.
Gold Terra Resource – https://www.commodity-tv.com/ondemand/companies/profil/gold-terra-resource-corp/ – has one of the largest and highest-grade gold deposits in Canada at its Yellowknife Gold Project in the Northwest Territories.
Current corporate information and press releases from Gold Terra Resource (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -) and Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-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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