Gold – rally, consolidation, repeat

Gold had completed a dynamic rally, then followed many months, since March 2022, in which the gold price was in correction. It was also March when the Fed announced its first rate hike. In early November, the price of the precious metal found a bottom at $1,621. Price pullbacks in gold between March and November were usually the result of interest rate hikes. The CME’s FedWatch tool provides information on how high the probability is for interest rate changes at the upcoming Fed meetings. According to the tool, a probability of 85.4 percent suggests that the Fed will only raise rates by 50 basis points in December, rather than 75. This is providing a boost to the gold price. It took less than two weeks for the gold price to rally above 150 U.S. dollars, consolidate and then repeat the whole thing.

So, expectations are rising that an end to high inflation numbers is near, and an end to interest rate hikes. Or, if not the end, perhaps we are on the way to it. The bond and stock markets are benefiting from this outlook, as are precious metals prices and mining stocks in particular. Gold prices have also been supported recently by record central bank buying. And perhaps countries such as Russia or possibly China are diversifying their reserves to be less dependent on the U.S. dollar. In any case, a well-managed portfolio should also include stocks of precious metals companies, which benefit particularly from rising prices, such as Fury Gold Mines or Calibre Mining.

Fury Gold Mines – https://www.youtube.com/watch?v=Omw4Pw5pyr4 – has prospective gold projects in Nunavut and Quebec. At the Eau Claire gold project in Quebec, very good drill results were recently announced.

Calibre Mining – https://www.youtube.com/watch?v=CZCIoAwrqRI – operates in the USA and Nicaragua. In the third quarter, the company produced almost 50,000 ounces of gold.

Current corporate information and press releases from Calibre Mining (- https://www.resource-capital.ch/en/companies/calibre-mining-corp/ -) and Fury Gold Mines (- https://www.resource-capital.ch/en/companies/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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