Profit-taking does not cloud good prospects for the gold price

After the gold price developed excellently in the course of the Ukraine-Russia war, profit-taking is nothing unusual. They should not deter investors, but on the contrary should be used as an entry opportunity. Now the Fed has tightened monetary policy, this is the first tightening since 2018, with the key interest rate being raised by 0.25 percentage points. That should already be largely priced in. How many rate hikes there will be this year is still uncertain. Experts at Dutch bank ABM AMRO, for example, expect seven rate hikes in 2022.

The Fed’s tightening policy entails risks for economic growth, and this is all the more true after the Russian invasion. Nevertheless, most assume that economic growth in the U.S. will continue, albeit at a slower pace, such as the head of Comerica Bank. Fed Chairman Powell says he intends to proceed "cautiously." If the war in Ukraine continues to weigh on market sentiment, this would help gold upward in price toward $2,000. The gold price will receive support from a stagflationary backdrop, as well as from the growing risk of hyperinflation in Russia. A recession in Europe should also have the same effect. The importance of gold and the advantages it can have over paper money are also shown by the attempts of Ukrainians to exchange their money here. Because Ukrainian money is not exchanged by the banks, at least at present, into euro. Gold could be turned into money more easily. Gold and gold companies are therefore of particular interest to investors.

Therefore, it does not hurt to take a closer look at companies such as Victoria Gold or Maple Gold Mines.

Victoria Gold – https://www.youtube.com/watch?v=D9dmvT1Blpk – owns the Dublin Gulch property in the Yukon. The Eagle and Olive gold deposits are located there, with Eagle being the youngest producing gold mine in the Yukon.

Maple Gold Mines – https://www.youtube.com/watch?v=Vdo9lMP0e4A -, together with partner Agnico Eagle, is active on the Douay and Joutel gold projects in Quebec. Approximately 3.3 million ounces of gold (proven and probable) are located there in reserves.

Current corporate information and press releases from Maple Gold Mines (- https://www.resource-capital.ch/en/companies/maple-gold-mines-ltd/ -) and Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-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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