Recession as a catalyst for gold

According to the latest assessment by Bloomberg Intelligence, the U.S. economy will slide into recession. The reason is the Fed’s still aggressive stance. Even though there were strong economic data at the beginning of the year, the markets are still suffering from stubborn inflation. Even though the gold price went down in February, it is still in an intact bull market. Higher gold prices are bound to happen, according to Bloomberg Intelligence. Investment research house BCA Research also sees higher prices in the precious metal, as geopolitical tensions are also on the rise. A war economy is beginning to take hold in the West, they say, and gold should cost around $2,000 per troy ounce by the end of the year. On the one hand, it is the political relations between the U.S. and China that have deteriorated. The U.S. had pulled a suspected Chinese spy balloon out of the sky. On the other hand, escalations in the Russia-Ukraine war are feared, as China may support Russia.

Geopolitical uncertainties coupled with a further deterioration in economic conditions could therefore have a favorable impact on gold prices. One argument for continued high inflation is that the war in Ukraine will continue to affect commodity prices in the near future. And the efforts of Western nations on climate change and defense spending will also keep inflation high. Time therefore for gold investments, for example in the stocks of Condor Gold or Skeena Resources.

Condor Gold – https://www.commodity-tv.com/ondemand/companies/profil/condor-gold-plc/ – is achieving excellent gold grades in drilling at its flagship La India project in Nicaragua.

Skeena Resources – https://www.commodity-tv.com/ondemand/companies/profil/skeena-resources-ltd/ – is bringing the formerly producing Eskay Creek gold-silver mine in British Columbia back to life.

Current corporate information and press releases from Skeena Resources (- https://www.resource-capital.ch/en/companies/skeena-resources-ltd/ -).

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