Whether in March, May or later, the gold price will certainly benefit when the first interest rate cut comes. Until then, we are unlikely to see any major jumps in the price of gold. There are still fears of an escalation of the Middle East conflict, which should help the gold price. The economy in China is important for the development of the gold price. And GDP there grew by 5.2% in 2023, even more than the government had assumed. By comparison, economic growth in 2022 was just three percent. Just like economic development, global politics is also a factor that influences the price of the precious metal.

The fact that the price of gold fluctuates is nothing new. When times are uncertain and determined by geopolitical crises, investors and central banks increasingly turn to gold. This was evident during the pandemic and the war in Ukraine, for example. The trade dispute between the USA and China and Brexit pushed up the price of the precious metal in 2019, reaching more than USD 1,500 per ounce at the time. In the last two years, the sharp rise in inflation has made gold more attractive and expensive.

However, inflation is weakening, for example in the UK (although it rose to four percent in December after 3.9 percent in November). And so the Bank of England is also expected to end its cycle of interest rate hikes. The situation is similar in France, the USA and here in Germany. The decline in inflation is not happening in a straight line. Many gold companies have not yet taken part in the jump in the gold price. Investments in GoldMining or Fury Gold Mines, for example, could be worthwhile.

GoldMining – https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ – owns a large portfolio of gold and gold-copper properties in the USA, a uranium project and shareholdings in Gold Royalty, U.S. GoldMining and NevGold.

Fury Gold Mines – https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ – is very well financed and has projects in Quebec and Nunavut. The company has a gold platform of several million ounces of gold.

Current company information and press releases from GoldMining (- https://www.resource-capital.ch/de/unternehmen/goldmining-inc/ -) and Fury Gold Mines (- https://www.resource-capital.ch/de/unternehmen/fury-gold-mines-ltd/ -).

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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