Gold – an effective diversifier

In the US, employment figures were disappointing (outside of agriculture). According to the Bureau of Labor Statistics, the US economy only created a disappointing 175,000 jobs. The unemployment rate went up and wages fell short of expectations. As a result, the price of gold rose briefly and there was selling, i.e. profit-taking. The mood on the gold market seems to have lost some of its euphoria. More attention is now being paid to interest rate policy and the monetary policy of the US Federal Reserve. If the labor market cools down and inflationary pressure eases, the Fed would have more leeway to cut interest rates again. However, the battle against inflation will continue. The US data is showing weakness overall. It is therefore more likely that the Fed will cut interest rates several times.

The gold price could now enter a consolidation phase, but this is not necessarily a bad thing. Investors will no longer have to chase the rising gold price but can build up new positions. And the drivers that have lifted the gold price so high, such as the central banks‘ desire to buy, will remain. Asian private investors and central banks in emerging markets in particular are increasingly buying gold. And the prevailing opinion is that this is not a temporary, but a long-term development. Countries that are turning away from the US dollar, especially the BRICS states, will need more gold for their international trade in the future, according to metals trader Andrew Maguire from London.

Many nations will enjoy high gold prices if they own physical gold and no longer have gold obligations via unsecured derivatives. In addition to physical gold, a few gold shares also belong in the portfolio, for example from Osisko Development or Skeena Resources.

Osisko Development – https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ – is developing a gold project in Canada, one in the USA and one in Mexico. The company focuses on the development of former producing properties.

Skeena Resources – https://www.commodity-tv.com/ondemand/companies/profil/skeena-resources-ltd/ – is working to revitalize two past producing gold properties in British Columbia’s Golden Triangle.

Current company information and press releases from Skeena Resources – (-  https://www.resource-capital.ch/en/companies/skeena-resources-ltd/ -) and Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-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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