Falling gold prices fuel demand

Important markets are now benefiting from the lower gold price.

Many have probably been waiting for the precious metal to fall in price and are now taking action. An ounce of gold cost 2,790.15 US dollars on October 31, a record high. The price of gold fell after the Republican election victory. Since October, and especially since November, demand has picked up significantly. This is because market sentiment has changed. After it was widely reported that the USD 3,000 mark would soon be broken, prices above USD 2,700 were no longer perceived as so expensive. Demand for minted products has now risen significantly, primarily for private investors and institutional investors. Demand from the Indian population, which had previously suffered from the high prices, has also picked up again. And as India is the second largest consumer, this is having an impact. There also seems to be more activity on the gold market in China. Many strategic investors are probably taking advantage of the price correction they have been waiting for.

It will now be interesting to see what happens to the price of the precious metal. According to the Fed Funds Futures, an interest rate cut of 25 basis points in December is only priced in to around 50 percent. The news that a ceasefire between the Hezbollah militia and Israel is possible immediately pushed the price of gold down slightly. This shows that the safe haven reacts immediately to a reduction in crises. The same applies to an expansion of crises, namely that the gold price can react quickly. In any case, as long as the 3,000 US dollar mark is still relatively far away, gold investments should not be wrong now. Gold companies such as Osisko Development or Collective Mining are also among them.

In Colombia, Collective Mining – https://www.commodity-tv.com/ondemand/companies/profil/collective-mining/ – is working on its flagship Guayabales project. It contains a high-grade copper-silver-gold-tungsten system.

Osisko Development – https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ – wants to become a medium-sized gold producer. The Cariboo gold project in Canada, the San Antonio gold project in Mexico and the Tintic project in the USA are particularly promising.

Current company information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and Collective Mining (- https://www.resource-capital.ch/en/companies/collective-mining-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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